Microsoft “disappointed” as FTC appeals recent loss in Activision Blizzard case

The Federal Trade Commission is appealing a recent US court decision denying its preliminary injunction request that would see Microsoft's bid to close the Activision Blizzard deal temporarily halted.  

While notice of the decision to appeal Judge Jacqueline Scott Corley's has been filed, the full extent of the US regulator's argument won't be more widely known until the full appeal is submitted to the Ninth Circuit Court of Appeals. 

"The District Court's ruling makes crystal clear that this acquisition is good for both competition and consumers," Microsoft president Brad Smith says. "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."

Activision Blizzard CCO and EVP of corporate affairs Lulu Cheng Meservey tweets: "The facts haven't changed. We're confident the US will remain among the 39 countries where the merger can close. We look forward to demonstrating the strength of our case in court - again."

The decision to deny the FTC's injunction request was delivered earlier this week, with a US court ruling that the US regulator had not provided substantial enough evidence that Microsoft's acquisition of Activision Blizzard King would lessen competition in the gaming industry.

"The Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition," the ruling reads. "To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content."

While the decision paved the way for Microsoft to close the deal in the US, the Ninth Circuit Court of Appeals may pause the timer on a temporary restraining order that Judge Corley recently ruled could end on July 14. If it doesn't, the deal could hypothetically close despite work needing to be done elsewhere. Microsoft still has to convince a UK watchdog to allow the deal to pass in that country, whereas the FTC has a separate challenge due to be waged in its in-house court, with proceedings due to begin on August 2. 

Had the FTC successfully gotten that preliminary injunction, the deal would have struggled to close in the US before the result of that challenge.

Here's everything you need to know about the Xbox Activision deal.