FTC Challenges Ruling Allowing Microsoft’s Acquisition of Activision Blizzard

The Federal Trade Commission (FTC) is appealing a judge’s ruling to allow Microsoft’s purchase of video game company Activision Blizzard to go ahead.

According to a Wednesday court filing, the FTC is appealing the judge’s ruling to the U.S. Court of Appeals for the 9th Circuit. This filing comes the day after U.S. District Judge Jacqueline Scott Corley blocked the FTC’s request to stop the deal from closing.

The FTC has been trying to stop the tech giant’s $68.7 billion purchase of Activision Blizzard, saying it could harm competition in the market if Microsoft, who owns the Xbox game system, also had control over popular video game franchises like “Call of Duty” and “World of Warcraft.”

Corley said the FTC hadn’t shown that the merger would cause serious harm to the industry and was unlikely to succeed if it took the case to a full trial.

“The FTC has not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets,” Corley wrote in her ruling.

FTC spokesperson Douglas Farrar said in a Wednesday statement the agency is “disappointed in this outcome given the clear threat this merger poses to open competition in cloud gaming, subscription services, and consoles.”

Activision Blizzard spokesperson Joe Christinat said in a statement to The Hill that the company remains “confident” the deal will close despite the appeal.

“The facts haven’t changed. We’re confident the U.S. will remain among the 39 countries where the merger can close. We look forward to reinforcing the strength of our case in court, again.”

Microsoft Vice Chairman and President Brad Smith said in a statement to The Hill the company is “disappointed” by the FTC’s move to appeal.

“The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers. We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward,” he said.

The Associated Press contributed.

Updated at 12:06 p.m.