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The Federal Trade Commission Considers Appeal in Microsoft-Activision Deal Case
The FTC's Potential Appeal
The Federal Trade Commission (FTC) is FTC appeals ruling that would have let Microsoft’s Activision takeover move forward | Engadget. According to a source familiar with the matter, the agency could file an appeal as early as Wednesday. If granted, the appeal would delay the closing of the deal past the July 18 deadline.
Uncertainty Surrounding the Decision
While the FTC has not made a final decision on the appeal, the temporary restraining order preventing the deal from closing will expire Friday midnight Pacific Time. The agency will have to act quickly if it wants to challenge the judge's decision. Even if an appeal is filed, the FTC will have to contend with the time constraints of the deal deadline.
Other Regulatory Hurdles
In addition to the FTC's opposition, Microsoft and Activision are also facing challenges from the U.K.'s Competition and Markets Authority (CMA). However, the CMA has agreed to halt its litigation in order to consider proposals to restructure the deal and address its concerns. This pause in the proceedings gives the parties some breathing room to potentially resolve the issues raised by the CMA.
Response from Microsoft
Microsoft has not yet commented on the FTC's potential appeal. The tech giant is undoubtedly monitoring the situation closely as it navigates the various regulatory hurdles standing in the way of its acquisition of Activision Blizzard.
Overall, the fate of the Microsoft-Activision deal remains uncertain as regulators and legal proceedings continue to shape the outcome. It is a high-stakes situation for both companies involved, and the appeal decision by the FTC could significantly impact the future of the deal.
Hot Take: Potential Impact on New Businesses
The ongoing legal battle between the Federal Trade Commission (FTC) and Microsoft-Activision deal highlights the potential challenges and uncertainties new businesses may face in the acquisition landscape. The outcome of this case could set legal precedents and influence how future deals are scrutinized by regulatory authorities.
For new businesses seeking mergers or acquisitions, this case serves as a reminder to thoroughly assess antitrust regulations and potential opposition from regulatory bodies. It is crucial to engage legal expertise to navigate the complex landscape and anticipate potential obstacles that could arise.
The FTC's appeal demonstrates the agency's commitment to vigorous antitrust enforcement in high-profile transactions. New businesses must proactively consider the potential impact of their deals on competition and be prepared to address concerns raised by regulatory authorities.
Moreover, international regulatory bodies, like the U.K.'s Competition and Markets Authority (CMA), can further complicate the process and add additional hurdles for new businesses expanding globally. Understanding the unique regulatory environments of different countries is essential for successful international mergers and acquisitions.
In conclusion, the Microsoft-Activision case serves as a cautionary tale for new businesses, reminding them to prioritize thorough regulatory due diligence, engage legal expertise, and anticipate potential challenges in the acquisition landscape. The outcome of this case could have far-reaching implications for future deals, making it essential for businesses to stay informed and adaptable to changes in the regulatory landscape.
Article First Published at: https://www.cnbc.com/2023/07/12/ftc-could-appeal-microsoft-activision-ruling-as-soon-as-today.html