Following the federal U.S. court order denying the FTC’s primary injunction against Microsoft acquiring Activision Blizzard, the FTC has officially filed an appeal. Now, Microsoft, Activision Blizzard and more have reacted.
Activision Blizzard’s CCO and EVP of Corporate Affairs Cheng released a statement on Twitter. Blizzard President Mike Ybarra also reacted to the appeal on Twitter.
In order for the FTC’s appeal to go through, the Ninth Circuit Court of Appeals needs to issue an emergency stay to extend the existing temporary restraining order which is set to expire at 11:59 PM PT on Friday, July 14th. Microsoft can close the Activision Blizzard deal on Monday or Tuesday without a restraining order in place. It’s not clear if a rule gets made before the deadline deal on July 18.
“The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers,” Brad Smith, Microsoft’s vice chair and president, said in a statement to The Verge. “We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.”
The appeal was even questioned by the House Judiciary Committee today during a hearing called the “Oversight of the Federal Trade Commission.” The hearing examined mismanagement of the FTC and its disregard for ethics and congressional oversight under Lina Khan, as well as examining the Commission’s record of enforcement actions and politicized rulemaking. During the hearing, Representative Kevin Kiley questioned Khan on the FTC’s use of spending on merger trials, despite its poor track record.
“You seem to be losing quite a bit, and I don’t say that to be disrespectful, but these are, after all, taxpayer funds,” Kiley said during the hearing. “You are now 0-4 in merger trials. The average win rate for the FTC in the modern antitrust era is around 75 percent. So I have to ask, why are you losing so much?”
Kiley also brought up the recent trial against Microsoft and how the FTC lost by failing to show how the merger would be anti-competitive. “The court not only rejected your assertion of a likely anti-competitive effect but found just the opposite,” Kiley said. “The record evidence points to more consumer access. So why should Americans have faith in your judgment when this Biden-appointed judge says you’re so far off the mark?”