US judge denies FTC request to block Microsoft-Activision merger

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A federal judge has thrown out a US competition regulator’s attempt to block Microsoft’s $75 billion purchase of Activision Blizzard, ruling that the Federal Trade Commission failed to show that the deal would harm competition in the video game market.

Shares of Activision rose more than 5 percent.

“The FTC has not shown that it is likely to succeed on its claim that the combined firm will likely pull (Activision’s blockbuster game) Duty Sony PlayStation, or its ownership of Activision content, would substantially reduce competition in the video game library subscription and cloud gaming markets,” Judge Jacqueline Scott Corley wrote in her decision.

The FTC has until Friday to appeal the decision. The agency had sought a preliminary injunction to block the deal pending the outcome of a separate challenge filed by the FTC in its in-house court, with proceedings scheduled to begin on August 2.

This is a developing story