FTC motion denied, as Microsoft's Activision acquisition nears completion

The US Federal Trade Commission (FTC) has seen its initial motion to appeal against this week's Microsoft and Activision Blizzard ruling promptly denied.

US District Judge Jacqueline Scott Corley, who presided over the main case, rejected the FTC's call for her to overturn her verdict late last night.

With this avenue now closed, the FTC has subsequently launched a new push for a "temporary pause" on Microsoft's $68.7bn Activision Blizzard acquisition, Reuters has reported, this time via with the Ninth Circuit Court of Appeals.

How is the FTC trying to push back? Put simply, the FTC is arguing its failed court case was judged too harshly - that Judge Corley placed too high a bar for the FTC to hurdle when it was simply seeking more time to examine the deal.

The FTC has also said it is unhappy with how Judge Corley "erred" on matters surrounding subscription access to Call of Duty and on the lack of importance placed on examining deals with cloud gaming rivals.

But as the case drags on, there's now political pressure for the FTC to admit defeat.

FTC boss Lina Khan was questioned yesterday by US politicians seeking answers on why the regulator had recently notched up a string of losses when dealing with company mergers.

"You seem to be losing quite a bit, and I don't say that to be disrespectful, but these are, after all, taxpayer funds," Representative Kevin Kiley told Khan (via IGN).

"The court not only rejected your assertion of a likely anti-competitive effect but found just the opposite," Kiley said. "The record evidence points to more consumer access. So why should Americans have faith in your judgment when this Biden-appointed judge says you're so far off the mark?"

The FTC's persistence has also prompted comment from Blizzard boss Mike Ybarra, who wryly noted that this was "your tax dollars at work".

Microsoft itself has commented on the FTC's ongoing efforts to hold up the deal, and said it would fight back.

"We're disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward," Microsoft president Brad Smith said this week in a quote passed to Eurogamer.

A ruling on whether the FTC's latest attempt will succeed is expected later today, with the next few days now crucial in getting the deal over the line.

Microsoft's plans to acquire Activision Blizzard have a formal expiry date of next Tuesday, 18th July. Barring any further holdups, the companies appear ready to finally close the deal as soon as possible this weekend.