A federal judge denied the Federal Trade Commission's plea for an early injunction to hinder Microsoft from finalizing its takeover of Activision Blizzard.This is one of the most tremendous efforts made by the FTC under Khan.Whilst numerous legislators are increasingly ready to accept a distinct attitude towards anti-trust in the digital age, the judicial system is still a large barrier to any fresh ideas about how tech giants can collect and utilize their authority to restrain their opponents.On Tuesday, a federal judge rejected the Federal Trade Commission's (FTC) request for a preliminary injunction to prevent Microsoft from completing its acquisition of Activision Blizzard. This setback indicates the challenge that FTC Chair Lina Khan's antitrust enforcement strategy currently faces in the courts.Despite bipartisan support for tougher antitrust action in Congress against digital giants, the courts are still a major hurdle for newer theories about how these firms leverage power to suppress rivals.Judge Jacqueline Scott Corley noted that the FTC had not demonstrated that it was likely to prevail in its administrative challenge to the merger, and agreed with Microsoft that the evidence actually pointed to "more consumer access to Call of Duty and other Activision content." Nevertheless, the FTC can still appeal the ruling, and the companies must still contend with the U.K. Competition and Markets Authority's opposition to the transaction.The judge's decision is another instance of a court being unpersuaded of Khan's theories on how tech companies can use acquisitions in related markets to reduce competition. To date, even with the backing of the same president who named her to the FTC, Khan has yet to surmount this obstacle.Due to the lack of progress on new digital competition laws in Congress, enforcers will likely continue to struggle with the issue of earning judges' approval for their theories of how existing laws should be applied.
Comments