After months of battling in courtrooms and across the globe, the FTC v. Microsoft court case surrounding the purchase of Call-of-Duty maker, Activision-Blizzard, has been decided in Microsoft’s favour, allowing the acquisition to move forward.
The one-and-a-half-year rollercoaster ride is finally over, so it seems, as a California judge is allowing Microsoft to continue with its blockbuster purchase of Activision-Blizzard after months of battling with the FTC, UK regulators, and more, all while different countries and companies have jumped into to give their opinions on the matter that could potentially shake the gaming landscape for years to come. While the antitrust case by the Federal Trade Commission is still up in the air, Judge Jacqueline Scott Corley has officially denied the regulator’s request for a preliminary injunction, per The Verge.
While this decision allows the purchase to continue in the United States, as well as the other countries that have already approved the purchase, the last blocked path for the deal comes from the UK, where the Competition and Markets Authority moved to block the acquisition in April, with an appeal coming July 28th. Microsoft does have the option to close the deal despite the UK’s concerns, as European regulators have already approved the deal, but with complications in how Activision-Blizzard games would be distributed in the UK in that scenario, Microsoft will look to close out the fight in the coming weeks.
From here, the FTC’s only other option would be to appeal the decision made by Judge Jacqueline Scott Corley, but considering how the FTC has operated in these situations in the past, that may not be the path they take after the long-fought battle. As long as that’s the case, that would also be the second major loss for FTC Chair Lina Khan as the head of the Federal Trade Commission.
With titles like Call of Duty, Overwatch, Diablo, and World of Warcraft as major parts of Activision-Blizzard’s stable of intellectual properties, Microsoft is looking to have, somehow, an even more dominant hold on the PC market, as well as leading the way with its top-quality subscription service—Xbox Game Pass. Luckily for those worried about the ramifications of the deal, Microsoft already has deals in place with Nintendo for Call of Duty, as well as promising to continue to bring it to PlayStation as well. While the deal does have a couple more steps to take, this all but clears the way for Activision-Blizzard’s place under Microsoft’s umbrella, at least in some way, shape, or form.
Positive news, oftentimes, comes alongside negative as well, as Microsoft also announced today that they were making some significant cuts to its customer service, support, and sales teams, with 10,000 global layoffs pending.
“Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners,” a Microsoft spokesperson said in a statement.
It’s always a bummer to see tons of people lose their jobs at these major companies, but it makes sense after an acquisition of this size. The number of new jobs and projects on the table always comes with cuts to try to offset things, and sadly this exciting (or scary, depending on your feelings) deal for Activision-Blizzard has come with its own set of negative paths toward offsetting costs.
