Microsoft’s appeal against Britain’s block on its $75 billion takeover of Activision Blizzard was formally paused by a London tribunal on Monday, to present the parties more time to resolve the dispute.
Microsoft, Activision and Britain’s competition regulator, the Competition and Markets Authority (CMA), had all asked for a two-month stay of the case after the CMA said it will consider a modified deal recommend by Microsoft.
The Competition Appeal Tribunal (CAT) ruled on Monday that the complete hearing of Microsoft’s appeal, which was because of begin on July 28, needs to be adjourned.
The CMA in April became the primary major regulator to block the acquisition of the “Call of Duty” maker, citing concerns concerning the impact on competition in cloud gaming.
The Federal Trade Commission has also opposed the tie-up, but suffered a major defeat last week when a federal court rejected the FTC’s application to temporarily halt the deal.
In Britain, the CMA’s final report will likely be the last word. Corporations cannot offer remedies after its publication and their only recourse is to the CAT.
But last week, lower than an hour after a US federal court ruled the deal could go ahead, the CMA said it could look again at a modified proposal. It later said a restructured deal could satisfy its concerns subject to a recent investigation.
All sides applied for a two-month pause of the case on the CAT, which the CMA’s lawyers said in court filings will “allow the CMA and the parties to interact swiftly and constructively in relation to Microsoft’s proposals.”
David Bailey, a lawyer representing the CMA, told the tribunal that the FTC’s initial defeat “formed no a part of the CMA’s pondering” when it decided it will take a look at a recent deal.
He added: “Based upon the discussion thus far, either side – Microsoft and the CMA – have faith that Microsoft notifying a restructured transaction is able to addressing the concerns that the CMA has identified.”
Microsoft’s lawyer Daniel Beard said: “The UK is the one impediment to closing (the deal) and speed is of the essence.”
