FTC Gets Called Out For Wasting Tax Money On Activision Appeal

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Spending Taxpayer Dollars On Losing Battle!

Recently, the FTC injunction to halt Microsoft’s acquisition of Activision has been denied, and Microsoft has won the case.

This decision was made after Judge Corley believed the acquisition could harm Sony but benefits gamers. However, the US regulator was unwilling to give up easily and immediately filed an appeal following the decision.

While it remains to be seen if the FTC will be successful, US politicians are already disappointed and recently claimed that the regulator is wasting money with this pursuit.

Why it matters: The FTC has historically lost in court many times. As such, the regulator is expected to lose the appeal, and politicians are unhappy that the regulator is pursuing a weak case.

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The House Judiciary Committee questioned the regulator. This meeting discussed various matters and addressed the recent court hearings between Microsoft and the FTC.

Despite the FTC’s confidence, it is understood that the regulator had a weak case in court. This resulted in a favorable outcome for Microsoft, but the FTC has decided to rechallenge the gaming giant.

During the hearing, Kevin Kiley said:

“You seem to be losing quite a bit, and I don’t say that to be disrespectful. But these are, after all, taxpayer funds.”

He then pointed out that the FTC has a track record of 0-4 in merger trials and said:

“Why are you losing so much?”

Representative Kiley also addressed the recent Activision Blizzard court hearings. He pointed out that the FTC believed the transaction would be completely anti-competitive.

However, Judge Corley’s final report did not support this view. On the contrary, she concluded that Microsoft’s purchase would be great for gamers due to the broader availability of Activision games.

Previously, many have believed that the FTC’s arguments have been centered around the acquisition’s threat to PlayStation. A few months ago, the regulator was also accused of siding with PlayStation as opposed to protecting consumer rights.

Nonetheless, an appeal against Judge Corley’s Activision Blizzard verdict has already been filed.

The next few days will be crucial to the future of the acquisition, as stock market changes have hinted that Microsoft may close the deal by Monday. New Zealand is also expected to announce its final decision on July 17.

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