FTC says it will appeal to block Microsoft-Activision deal

FTC Won’t Give Up Efforts to Stop Microsoft Completes $68.7 billion acquisition of game publisher Activision Blizzard..on Wednesday, the agency submit Appealing a federal judge’s decision to dismiss a request for a preliminary injunction that would have prevented the deal from closing.

The decision came a day after U.S. District Judge Jacqueline Scott Corley of the Northern District of California ruled in favor of the two companies.

The FTC first filed a lawsuit to block the acquisition last December and then filed for an emergency injunction last month ahead of the deal’s July 18 deadline. The FTC has argued that the deal is anticompetitive because if it goes through, Microsoft could make some of its games exclusive to its own consoles or dilute the Activision gaming experience on rival services. Microsoft says it will make these games more widely available.

Corley ruled that the FTC had not shown that it could prevail in an administrative challenge to the merger in its internal procedures.

CNBC reported earlier Wednesday that the FTC may send the judge’s ruling to the Ninth Circuit Court of Appeals.

“I’d be surprised if they were wasting taxpayer resources on something like this,” Activision Blizzard CEO Bobby Kotick told CNBC’s Julia Boorstin on Wednesday, referring to FTC appeal. Kotick said he did not think the appeals court would grant a stay.

The FTC declined to comment on its legal response to the judge’s ruling. The agency moved quickly, and Microsoft hopes to close the acquisition by July 18.

Microsoft did not immediately respond to a request for comment.

The software maker is also busy seeking UK approval for the deal. Brad Smith, a Microsoft executive, said the company and Activision Blizzard had reached an agreement with the country’s Competition and Markets Authority that a stay of the lawsuit would be beneficial.

watch: Activision CEO Bobby Kotick: I’d be surprised if FTC wastes taxpayer money on appeal