Court ruling allows Microsoft deal to buy Activision-Blizzard

U.S. District Court Judge Jacqueline Scott Corley on Tuesday ruled that a nearly $70 billion merger between Microsoft and gaming giant Activision-Blizzard may proceed. The Federal Trade Commission’s attorneys had argued for halting the merger on grounds it would reduce competition in the video game industry. Of particular concern was the availability of the video game series Call of Duty, which has gathered more than $30 billion over its lifetime. Microsoft and Activision have promised to keep the franchise available on Sony PlayStation consoles, as well as Microsoft Xboxes, for the next ten years. Corley found that the FTC had not shown that the merger deal would harm competition in the industry, or that the government would win at a full trial.

So what happens next? The FTC has until Friday to appeal Corley’s decision. The merger is scheduled to close on July 18—before then, Activision-Blizzard and Microsoft must work out a deal with regulators to allow the merger to apply in the United Kingdom.

Dig deeper: Read Brad Littlejohn’s column in WORLD Opinions about the need for a competitive marketplace.