Xbox Emerges Victorious in FTC Court Case as Judge Rejects Preliminary Injunction

Exciting news! The recent court case involving Microsoft, Xbox, and Activision Blizzard has concluded with a victory for the defendants. The U.S. Federal Trade Commission’s (FTC) request for a preliminary injunction against Microsoft’s attempted takeover of Activision Blizzard has been denied by the judge. This decision was made after careful consideration of the extensive written submissions and a five-day evidentiary hearing, as stated in the 53-page document filed earlier today.

The court found that the FTC failed to demonstrate a likelihood of success in their claim that the merged company would likely remove Call of Duty from the Sony PlayStation platform. Additionally, the court did not find sufficient evidence to support the FTC’s argument that the ownership of Activision content by the merged entity would substantially reduce competition in the video game library subscription and cloud gaming markets.

The FTC originally filed the request for an injunction, along with a temporary restraining order, due to concerns that Microsoft and Activision Blizzard were seeking to finalize their deal before the regulator could assess whether it violated U.S. antitrust laws. Previously, the FTC had scheduled an in-house evidentiary hearing for August 2nd.

With the court’s denial of the preliminary injunction, the path is now cleared for the Microsoft-Activision Blizzard takeover to proceed in the United States. However, it’s important to note that the deal still faces obstacles, as the UK Competition and Markets Authority recently blocked the merger. Although progress has been made, the final outcome is yet to be determined.

As developments unfold, it will be interesting to see how Microsoft and Activision Blizzard navigate the remaining challenges and continue to shape the gaming industry with their combined resources and expertise.

Here’s what Microsoft’s Brad Smith had to say in a statement this afternoon:

“We’re grateful to the Court in San Francisco for this quick and thorough decision and hope other jurisdisctions will continue working towards a timely resolution. As we’ve demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns.”