FTC appeals ruling that would have allowed Microsoft's takeover of Activision to go ahead

The Federal Trade Commission is not giving up on its bid to stop Microsoft from buying Activision Blizzard for $68.7 billion. The agency said in a filing that it is appealing Judge Jacqueline Scott Corley's denial of her request for a preliminary injunction to temporarily prevent the deal from closing.

The FTC filed a lawsuit to stop the merger from happening due to antitrust concerns. An administrative trial is due to begin in August, but the companies have a July 18 merger deadline. The agency feared that Microsoft and Activision would complete their deal by then despite a UK regulator blocking the deal in that country.

Bloomberg first reported that the agency was considering appealing Corley's decision. The FTC told Engadget after Tuesday's ruling that it would announce its "next step in continuing our fight to preserve competition and protect consumers" in the coming days.

Corley has ruled that unless the FTC obtains an emergency stay from the Ninth Circuit Court of Appeals by 11:59 p.m. PT on July 14, a temporary restraining order that currently prevents Microsoft and Activision from conclude the agreement will be dissolved. The restraining order was put in place until Corley makes a decision on the preliminary injunction.

Meanwhile, after Corley's decision, Microsoft, Activision Blizzard and the UK Competition and Markets Authority said they had agreed to put their legal battle on hold and see if they could reach a settlement. compromise. The CMA later clarified that while "the merging parties do not have the ability to offer new remedies once a final report has been issued, they may choose to restructure an agreement." He added that this could lead to a new investigation into the merger.

"The District Court's decision makes it clear that this acquisition is good for both competition and consumers," Microsoft President and Vice President Brad Smith said in a statement posted on Twitter. "We are 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."

"The facts have not changed. We are confident that the United States will remain among the 39 countries where the merger can be completed," Activision Blizzard said in a statement to Engadget. "We look forward to further strengthening the strength of our case in court."

Update 7/12 9:10 PM ET: Added statement from Activision.

Update 7/12 10:19 PM ET: Added statement from Brad Smith.