Microsoft Fails to Reach Settlement With FTC; Activision Deal Set Back [UPDATE]

CMA overwhelmed by scale of investigation, needs more time

Just a day after reports on the lack of progress in the Federal Trade Commission's lawsuit against Microsoft, the British authority concurrently investigating Activision's acquisition made a significant announcement.

The Consumer Protection Authority (CMA), which recently investigated the monumental deal, was due to publish a report with its conclusions on March 1, 2023. Today, however, we learned that the date for making the summary public has been postponed to April 26.

The reason for the delay is said to be the previously unforeseen complexity of the topic and the amount of evidence and third-party testimonies collected by the CMA. Despite the nearly two-month official extension of the process the group plans to issue a statement as soon as possible, even before the deadline announced today.

As early as mid-February, members of the British office are expected to inform everyone connected with the case of the findings, giving them the opportunity to make a final reference to the evidence gathered.

The three main pillars deciding the acquisition of Activision by Microsoft.

The CMA and the European Union count more for Microsoft than the US FTC

An in-depth investigation by the Brits, based among other things on third-party opinions sent to the CMA that mostly support Microsoft's actions, could prove crucial to the situation in America and the future of the deal.

According to MLex, representatives of the Redmond giant plan to use the opinion of the Consumer Protection Authority and the EU in their dispute with the FTC, the conclusion of which is expected to come last (the August 2023 deadline was given yesterday).

Even more importantly, Beth Wilkinson, who serves as Microsoft's chief counsel, admitted that in the event that Microsoft's takeover of Activision in Europe and the UK is approved, her clients plan to put their plan into effect even before the situation with the FTC is finalized, without the acquiescence of the Americans.

The lawyer is aware that such an action will probably lead to a trial in a higher court, but Microsoft and Activision representatives are not afraid of this. After the enthusiastic response from the Brits and the less intricate battle in Europe, winning in the States is only expected to be a matter of formality, which they believe will come as soon as they start finalizing the purchase, about which they are very confident.

Original message

New reports have reached us regarding Microsoft's attempt to acquire Activision. After a small victory in the UK, where the giant convinced public figures that the deal was harmless, the process for the deal's acceptance is still far from being finalized in the United States.

In early December, the US Federal Trade Commission (FTC) filed a formal complaint, attempting to stop Microsoft's nearly $69 billion purchase of Activision Blizzard and expressing concerns about the monopolization of the video game market. A court hearing resolving the dispute has been scheduled for this August, and yesterday a preliminary hearing took place.

Federal Trade Commission building. Source: Unsplash.

According to James Weingarten, acting attorney for the commission, neither side has meaningfully engaged in discussions about a possible settlement, which would allow for an early discontinuance of the trial.

This is not to say that there will not be further attempts to reach an agreement, but well-known gaming industry lawyer David B. Hoppe stated for Gamesindustry.biz that committee members are skeptical about the value of such a settlement, so it will be extremely difficult.

A big court hearing awaits in 8 months

If the situation does not change, Microsoft's battle with US authorities will drag on for a long time to come. The court proceedings, which are expected to begin in 8 months, will not be definitive - both sides in the dispute will be given the opportunity to appeal the verdict (first to the FTC commissioners, who filed the original legal complaint, and later to the US Court of Appeals).

In addition to this, the UK's Consumer Protection Authority and the European Commission still have not issued an official opinion on the subject. The only countries that have so far given the green light to Microsoft are Chile, Serbia, Brazil and Saudi Arabia.