FTC vs Microsoft: What exactly happened, court dates, and more explained

Modified Jun 22, 2023 20:28 GMT

The fate of Microsoft's acquisition of Activision Blizzard hangs in the balance (Image via Activision)

The Federal Trade Commission (FTC) is currently involved in a legal battle with software giant Microsoft over its Activision acquisition deal. While most countries worldwide favored the deal, the FTC believes this acquisition would create an imbalance in the gaming markets. This isn't the first time a legal battle of this magnitude has come to the fore.

Here's a quick rundown of everything that has transpired so far.

When are the court dates for FTC vs. Microsoft hearing?

The hearing for the FTC vs. Microsoft injunction began on June 22 and will continue for the next five days. We'll update this piece as the events unfold over the course of the injunction hearing. However, the software giant must close the Activision deal before July 18 or pay a hefty sum of $3 billion as compensation.

While this injunction is being heard, Xbox makers will have to gear up for another injunction on the same grounds filed by the Competitions and Markets Authority (CMA), another organization trying to block this deal, in Europe.

The hearing for that case will begin on July 22. If the injunction does not go in FTC's favor, it could set a precedent for the one filed by the CMA. There's a high chance that the latter's verdict would be in Microsoft's favor.

What could be the potential ramifications of Microsoft vs FTC injunction?

If the FTC were to win the lawsuit, Microsoft would potentially walk away from the deal. Not only that, they will have to pay a hefty sum to Activision Blizzard for being unable to conclude proceedings.

If opted otherwise, Microsoft would have to determine a date to close the deal. However, that would only progress after the resolution of a separate lawsuit the FTC filed in December last year. That hearing is scheduled to begin on August 2.

If the FTC fails to secure this injunction, then the Xbox makers will, in all probability, secure the deal with Activision Blizzard. The FTC is worried that if the deal goes through, Microsoft will monopolize the Call of Duty franchise and either make it exclusive to the Xbox consoles or tweak the games to ruin their performance on competitor consoles.