Microsoft, UK regulators granted pause of appeal over Activision deal

Microsoft’s appeal against Britain’s block on its $75 billion takeover of Activision Blizzard was formally paused by a London tribunal on Monday, to give the parties more time to resolve the dispute.

Microsoft, Activision and Britain’s competition regulator, the Competition and Markets Authority (CMA), had all asked for a two-month stay of the case after the CMA said it would consider a modified deal put forward by Microsoft.

The Competition Appeal Tribunal (CAT) ruled on Monday that the full hearing of Microsoft’s appeal, which was due to begin on July 28, should be adjourned.

The CMA in April became the first major regulator to block the acquisition of the “Call of Duty” maker, citing concerns about the impact on competition in cloud gaming.

The Federal Trade Commission has also opposed the tie-up, but suffered a major defeat last week when a federal court rejected the FTC’s application to temporarily halt the deal.

In Britain, the CMA’s final report is usually the last word. Companies cannot offer remedies after its publication and their only recourse is to the CAT.

Microsoft logo
Microsoft said pausing the case would allow all sides to try and find a solution.

But last week, less than an hour after a US federal court ruled the deal could go ahead, the CMA said it could look again at a modified proposal. It later said a restructured deal could satisfy its concerns subject to a new investigation.

All sides applied for a two-month pause of the case at the CAT, which the CMA’s lawyers said in court filings will “allow the CMA and the parties to engage swiftly and constructively in relation to Microsoft’s proposals.”

David Bailey, a lawyer representing the CMA, told the tribunal that the FTC’s initial defeat “formed no part of the CMA’s thinking” when it decided it would look at a new deal.

Advertisement for the video game "Call of Duty"
In April, Britain’s competition regulator became the first major regulator to block the acquisition of the “Call of Duty” maker.

He added: “Based upon the discussion to date, both sides – Microsoft and the CMA – have confidence that Microsoft notifying a restructured transaction is capable of addressing the concerns that the CMA has identified.”

Microsoft’s lawyer Daniel Beard said: “The UK is the only impediment to closing (the deal) and speed is of the essence.”

Source link

𝗖𝗿𝗲𝗱𝗶𝘁𝘀, 𝗖𝗼𝗽𝘆𝗿𝗶𝗴𝗵𝘁 & 𝗖𝗼𝘂𝗿𝘁𝗲𝘀𝘆:
𝗙𝗼𝗿 𝗮𝗻𝘆 𝗰𝗼𝗺𝗽𝗹𝗮𝗶𝗻𝘁𝘀 𝗿𝗲𝗴𝗮𝗿𝗱𝗶𝗻𝗴 𝗗𝗠𝗖𝗔,
𝗣𝗹𝗲𝗮𝘀𝗲 𝘀𝗲𝗻𝗱 𝘂𝘀 𝗮𝗻 𝗲𝗺𝗮𝗶𝗹 𝗮𝘁

Similar Posts