Microsoft has surpassed two significant obstacles in its plan to acquire Activision Blizzard, the video game company, after U.S. Judge Jacqueline Scott Corley approved the deal valued at $69 billion. Activision's shares rose by 10% following the news, as the United States and the United Kingdom were the only two countries opposing Microsoft's largest deal in the history of the gaming industry.
The UK's Competition and Markets Authority is set to review Microsoft's proposals to alleviate antitrust concerns in Britain, suggesting that a resolution may be on the horizon.
In this context, the U.S. Federal Trade Commission expressed that "Microsoft would be able to use Activision's games to sideline competitors such as Nintendo and Sony." Judge Corley stated, "The Federal Trade Commission did not demonstrate that the merged company is likely to withdraw Call of Duty from Sony's PlayStation platform or that its ownership of Activision's games would significantly reduce competition in the video game and cloud gaming markets."
Microsoft President Brad Smith noted that the company is grateful for the "swift and comprehensive" decision, adding that the focus will now be on exploring changes that could be made to the deal to alleviate the concerns of the Competition and Markets Authority in the UK.
The court has given the commission until Friday to appeal the decision. To address the authority's concerns, Microsoft has agreed to license Call of Duty to competitors, including a 10-year contract with Nintendo, contingent upon the completion of the merger deal.
