FTC could appeal Microsoft-Activision ruling as soon as Wednesday

The FTC can appeal a judge’s decision against its attempted arrest Microsoft And Activision Blizzard of a $68.7 billion deal closing as soon as Wednesday, a source familiar with the matter confirmed to CNBC.

bloomberg It first reported that the agency was leaning toward an appeal after U.S. District Judge Jacqueline Scott Corley denied the FTC’s request for a preliminary injunction. If granted, the parties will not be able to close their deal until the FTC’s internal administrative procedure is implemented later this summer, after the July 18 deal deadline.

The FTC has not reached a final decision on the appeal, according to the source, who was not authorized to speak publicly in the internal discussions. But the temporary restraining order preventing Microsoft and Activision from shutting down will expire after 11:59 p.m. PST on Friday. The Federal Trade Commission declined to comment.

Even on appeal, the agency will be racing the clock from the deal deadline until the court works. The parties are still dealing with opposition from the UK’s Competition and Markets Authority, but that agency agreed on Tuesday after ruling in the US to halt litigation in order to consider proposals to restructure the deal that might allay its concerns.

A Microsoft spokesperson referred CNBC to an earlier statement from Microsoft Vice President and President Brad Smith, who said they “hope other jurisdictions will continue to work towards a resolution in a timely manner. As we have consistently made clear throughout this process, we are committed to acting creatively and collaboratively to address organizational concerns.”

– CNBC Steve Kovac Contribute to this report.

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