FTC’s Potential Appeal Against Microsoft-Activision Verdict

The U.S. Federal Trade Commission (FTC) is reportedly considering appealing a federal judge’s ruling in favor of Microsoft and Activision Blizzard. In her decision made public yesterday, Jacqueline Scott Corley denied the FTC a preliminary injunction against the merger, allowing Microsoft and Activision to consummate.

FTC’s Track Record and the Possibility of an Appeal

The FTC doesn’t typically pursue appeals after initial losses, but a source familiar with the case claimed that the agency is “leaning towards” filing an appeal. Should this turn out to be true, such a move would be considered an outlier.

Timing and Strategy of the Potential Appeal

Although a final decision has not been made, Bloomberg reports that the FTC could file an appeal as early as today, July 12. The agency is allegedly planning to seek an emergency stay from the 9th Circuit Court of Appeals, given that the merger deadline for Microsoft and Activision is next Tuesday, July 18.

Criticism and Analysis of Judge Corley’s Decision

Judge Corley’s decision has attracted criticism from some observers who argue that, according to the law, the FTC only needed to demonstrate that the merger “may” substantially reduce competition, rather than proving that it will or is likely to do so. On the other hand, critics emphasize that the FTC’s case was weak.