FTC pauses case in its own court over Microsoft’s Activision takeover
The American regulator FTC has paused its case before its own independent administrative law judge to stop Microsoft’s takeover of Activision Blizzard. The appeal to the federal court to block the takeover is still ongoing.
The FTC has paused its case before the Administrative Law Judge, reports the supervisor. This ALJ is an independent administrative law judge of the FTC, who had an initial hearing scheduled for August 2. Microsoft and Activision Blizzard asked the FTC to withdraw this case after Microsoft won another lawsuit, a preliminary injunction, with which the FTC wanted to block the takeover. The FTC had no objection to withdrawing the case from the ALJ.
Microsoft and Activision noted that in other cases where the FTC has lost a preliminary injunction, it has “consistently” chosen to drop the ALJ case. The two companies therefore believe that this should happen now. With the ALJ case on pause, the FTC may consider doing so. In theory, the regulator can also consult with the two companies to demand additional concessions.
The suspension does not immediately mean that the FTC has dropped all lawsuits against the takeover and that the takeover can therefore proceed. The FTC’s appeal against the preliminary injunction is still pending. In addition, the takeover is still blocked in the United Kingdom, although Microsoft and the regulator there are in discussions to get the takeover approved. Microsoft and Activision Blizzard this week postponed the acquisition deal deadline to October 18.