FTC Halts Internal Trial Against Microsoft, Opening Door to Settlement

The US Federal Trade Commission (FTC) granted Microsoft’s request to halt an internal trial that was scheduled for August and would have occurred too late to prevent the software giant from acquiring Activision Blizzard. It seems the two sides are now prepared to compromise.

News of the FTC suspending its administrative challenge comes via Bloomberg, which says that Microsoft and Activision Blizzard can now negotiate directly with the FTC, just as it is doing with the UK’s regulatory body, the Competition Markets Authority (CMA), to reach a settlement. The FTC challenge came about after a U.S. Appeals court ruled against the agency’s emergency motion to halt the software giant’s acquisition of Activision Blizzard. But had the challenge gone to trial internally at the FTC, it would have happened after the acquisition had already been finalized.

Now, Microsoft can avoid that bit of silliness. And it has two options before it, Bloomberg reports: it can offer concessions and reach a settlement with the FTC or it can seek to have the FTC—which has lost badly in federal court already—drop its ridiculous opposition to the acquisition.

Whatever happens with the FTC, Bloomberg also notes that the agency is free to restart its in-house case even if the acquisition is finalized. But the FTC normally dismisses internal administrative cases when it loses in federal court.