A U.S. appeals court has denied the request of regulators to stop Microsoft from finalizing its $68.7 billion acquisition of Activision Blizzard, a major video game company.
This legal battle centered around concerns about competition. The court ruling allows Microsoft to proceed with the deal, although it still faces a $3 billion penalty if the acquisition isn’t completed by Tuesday.
The Federal Trade Commission (FTC) attempted to block the merger through an injunction, but their efforts were unsuccessful.
The FTC argued that the court made mistakes in its decision, while Microsoft stated that it could divest Activision Blizzard if necessary.
The deal still needs approval from UK regulators, but the deadline has been extended, indicating a potential change in their stance after the U.S. court ruling.
The Competition and Markets Authority initially rejected the deal due to concerns about competition in the growing cloud gaming market, but they will now review Microsoft’s detailed response before making a final decision.