Official from US Federal Trade Commission (FTC) Retracts Lawsuit Attempting to Halt Microsoft-Activision $69 Billion Acquisition

The US Federal Trade Commission official withdrew their case against Microsoft’s $69 billion acquisition of Activision, a game-maker, on Thursday. The agency had pursued this case through two approaches: district court and an in-house judge. However, both avenues did not favor the agency. The withdrawal of the case before the administrative law judge has now been ordered by FTC Secretary April Tabor, suspending the trial set for August 2. Microsoft and Activision submitted a motion to the FTC, stating that the case’s withdrawal is necessary and in the public interest.

Activision Blizzard announced an extension of the deadline for Microsoft’s takeover until October 18, as they work on obtaining approval from the UK antitrust authority. Additionally, the companies agreed to increase the deal termination fee to $3.5 billion if the deal fails to close by August 29, and the fee will further rise to $4.5 billion after September 15. Microsoft’s appeal against the UK’s block on the takeover was also paused by a London tribunal to allow for resolution discussions between Microsoft, Activision, and the Competition and Markets Authority (CMA).

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