Microsoft Moves Closer to Completing $69 Billion Activision Takeover after Court Rebuffs Regulators

A sign is seen outside the Activision building in Santa Monica, Calif. on Wednesday, June 21, 2023. (AP)
A sign is seen outside the Activision building in Santa Monica, Calif. on Wednesday, June 21, 2023. (AP)
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Microsoft Moves Closer to Completing $69 Billion Activision Takeover after Court Rebuffs Regulators

A sign is seen outside the Activision building in Santa Monica, Calif. on Wednesday, June 21, 2023. (AP)
A sign is seen outside the Activision building in Santa Monica, Calif. on Wednesday, June 21, 2023. (AP)

A US appeals court on Friday rejected a bid by federal regulators to block Microsoft from closing its $68.7 billion deal to buy video game maker Activision Blizzard, paving the way for the completion of the biggest acquisition in tech history after a legal battle over whether it will undermine competition.

In a brief ruling, a three-judge panel on the 9th US Circuit Court of Appeals concluded there were no grounds for issuing an order that would have prevented Microsoft from completing its nearly 18-month-old deal to take over the maker of popular video games such as Call of Duty.

The Redmond, Washington, software maker is facing a potential $3 billion termination fee if the deal isn't completed by Tuesday.

“This brings us another step closer to the finish line in this marathon of global regulatory reviews,” Microsoft President Brad Smith said in a statement.

The appeal filed by the US Federal Trade Commission was a last-ditch effort from antitrust enforcers to halt the merger after another federal judge earlier this week ruled against the agency's attempt to block it. The FTC was seeking an injunction to prevent Microsoft from moving to close the deal as early as this weekend.

The FTC declined to comment on the ruling.

US District Judge Jacqueline Scott Corley's earlier ruling, published Tuesday, said the FTC hadn't shown that the deal would cause substantial harm. She focused, in part, on Microsoft's promises and economic incentive to keep Call of Duty available on rivals to its own Xbox gaming system, such as Sony's PlayStation and Nintendo's Switch.

In its appeal, the FTC argued Corley made “fundamental errors.”

“This case is about more than a single video game and the console hardware to play it,” the FTC said. “It is about the future of the gaming industry. At stake is how future gamers will play and whether the emerging subscription and cloud markets will calcify into concentrated, walled gardens or evolve into open, competitive landscapes.”

The case has been a difficult test for the FTC's stepped-up scrutiny of the tech industry's business practices under its chairperson, Lina Khan, appointed in 2021 by President Joe Biden. Standing legal doctrine has favored mergers between companies that don't directly compete with one another.

Khan came under fire from Republicans at a hearing Thursday in the House of Representatives for the agency’s enforcement record, with one California lawmaker questioning whether the FTC was picking losing fights against mergers on purpose to pressure Congress to update its antitrust laws.

“Absolutely not,” Khan replied, while acknowledging that “unfortunately, things don’t always go our way.”

The FTC's appeal said Corley, herself a Biden nominee, applied the wrong legal standard by effectively requiring its attorneys to prove their full case now rather than in a trial due to start in August before the FTC’s in-house judge.

It was the FTC, however, that had asked Corley for an urgent hearing on its request to block Microsoft and Activision Blizzard from rushing to close the deal. The agency's argument was that if the deal closed now, it would be harder to reverse the merger if it was later found to violate antitrust laws.

In its response to the appeal, Microsoft countered that it could “readily divest” Activision Blizzard later if it had to. It has long defended the deal as good for gaming.

The deal still faces an obstacle in the United Kingdom, though one it now appears closer to surmounting.

British antitrust regulators on Friday extended their deadline to issue a final order on the proposed merger, allowing them to consider Microsoft's “detailed and complex submission” pleading its case.

The Competition and Markets Authority had rejected the deal over fears it would stifle competition for popular game titles in the fast-growing cloud gaming market.

But the UK watchdog appears to have softened its position after Corley thwarted US regulators’ efforts to block the deal.

The authority says it has pushed its original deadline back six weeks to Aug. 29 so it could go through Microsoft’s response, which details “material changes in circumstance and special reasons” why regulators shouldn’t issue an order to reject the deal.



Google, Meta, TikTok Hit by EU Consumer Complaints about Handling of Financial Scams

FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo
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Google, Meta, TikTok Hit by EU Consumer Complaints about Handling of Financial Scams

FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo

Alphabet's Google, Meta Platforms and TikTok were hit with complaints from European Union consumer groups on Thursday for allegedly failing to protect users from financial scams on their platforms, putting them at risk of regulatory fines.

The move highlights growing pressure worldwide on Big Tech to do more to address the negative impacts of social media, particularly for children and vulnerable users.

The complaints, filed by the European Consumer Organisation (BEUC) and 29 of its members in 27 European countries, were submitted to the European Commission and national regulators under the Digital Services Act, which requires large online platforms to do more to tackle illegal and harmful content, Reuters reported.

"Meta, TikTok and Google not only fail to proactively remove fraudulent ads but also do little when being notified about such scams," BEUC Director General Agustin Reyna said in a statement.

"If they fail to address the financial scams circulating on their platforms, fraudsters will continue to reach millions of European consumers daily, leaving people at risk of losing hundreds to thousands of euros to fraud," he said. Google and Meta rejected the complaints and said they work proactively to protect their users.

A Google spokesperson said: "We strictly enforce our ad policies, blocking over 99% of violating ads before they ever run. Our teams constantly update these defences to stay ahead of scammers and protect people."

Meta said it found and removed over 159 million scam ads last year, 92% before anyone reported them. "We invest in advanced AI, tools, and partnerships to stop them," a spokesperson said.

TikTok said it takes action against violations, adding that scams are an industry-wide challenge while bad actors constantly adapt their tactics.

The consumer groups, meanwhile, said they reported nearly 900 ads suspected of breaching EU laws between December last year and March this year but the platforms only took down 27% of the ads and 52% of the reports were rejected or ignored.

The groups urged regulators to investigate whether the companies were complying with the rules and to impose fines for breaches.

DSA fines can reach as much as 6% of a company's global annual turnover.


SDAIA Outlines Comprehensive Data Quality Journey to Support National AI Initiatives

The Saudi Authority for Data and Artificial Intelligence (SDAIA)
The Saudi Authority for Data and Artificial Intelligence (SDAIA)
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SDAIA Outlines Comprehensive Data Quality Journey to Support National AI Initiatives

The Saudi Authority for Data and Artificial Intelligence (SDAIA)
The Saudi Authority for Data and Artificial Intelligence (SDAIA)

The Saudi Data and Artificial Intelligence Authority (SDAIA) highlighted data quality as a critical foundation for enhancing information reliability, boosting performance, and enabling accurate business decisions, as part of its efforts during the Year of Artificial Intelligence 2026 to raise awareness about data importance.

The authority noted that high data quality serves as the cornerstone for sustainable national trust, integrated digital services, operational savings, entrepreneurship, and readiness for artificial intelligence applications, SPA reported.

SDAIA stated that the data quality journey spans five phases, beginning with a creation phase, where data is entered according to standardized criteria.

This is followed by a storage and organization phase to structure data and eliminate duplication, and an integration and sharing phase, which assesses quality before data is reused.

The journey continues through an analysis and use phase, where report accuracy is tied directly to source quality, and culminates in a continuous improvement phase, which utilizes analysis and user feedback to constantly refine data sets.

SDAIA called on organizations to adopt comprehensive data quality practices and strictly adhere to national regulations and standards. This includes integrated data quality planning, prioritizing initial assessments, developing data rules, and establishing clear performance indicators to measure improvement.

The authority also emphasized the importance of conducting periodic reviews and enabling users to report quality problems, which will ultimately maximize the efficiency of digital services and AI applications across the Kingdom.


Dell to Asharq Al-Awsat: AI in Saudi Arabia Enters Production, Not Experimentation Phase

Mohammed Amin, Senior Vice President for Central Eastern Europe, Middle East, Türkiye and Africa at Dell Technologies
Mohammed Amin, Senior Vice President for Central Eastern Europe, Middle East, Türkiye and Africa at Dell Technologies
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Dell to Asharq Al-Awsat: AI in Saudi Arabia Enters Production, Not Experimentation Phase

Mohammed Amin, Senior Vice President for Central Eastern Europe, Middle East, Türkiye and Africa at Dell Technologies
Mohammed Amin, Senior Vice President for Central Eastern Europe, Middle East, Türkiye and Africa at Dell Technologies

Saudi Arabia became a focal point of discussion in the “Dell Technologies World 2026” in Las Vegas this week about the next phase of artificial intelligence.

The question is no longer just about the size of investment in infrastructure or national capacity building, but about the difference the Kingdom can make in a global market transitioning from AI experimentation to its operational deployment within institutions.

In exclusive remarks to Asharq Al-Awsat, Michael Dell, Chairman and CEO of Dell Technologies, stated that what the company sees in Saudi Arabia is a “deep commitment to modernizing the Kingdom,” highlighting its significant energy resources and Dell's collaboration with Humain and other companies in the Kingdom, in addition to a regional facility through which the company works to “aggregate these capabilities and build infrastructure for customers in the region.”

He added that every country today is going through a phase of re-understanding what the transition towards AI means, and how citizens and industries can be empowered to drive the economy forward. In the same session, Dell described Saudi Vision 2030 as “highly ambitious,” and the ambition for AI under this vision as “impressive.”

The Operation Test

From this point, the real discussion about Saudi Arabia and artificial intelligence begins. The narrative is no longer solely about the volume of investments, the speed of data center construction, or the number of announced national projects.

The challenge of the next test relates to how this national capability can be transformed into operational value within government entities, banks, hospitals, energy and telecommunications companies, and smart cities. It's about how institutions move from AI experiments to systems that operate daily, on real data, within secure environments, and at a predictable cost.

Mohammed Amin, Senior Vice President for Central Eastern Europe, Middle East, Türkiye and Africa at Dell Technologies, places this transformation in a clear context.

In remarks to Asharq Al-Awsat on the sidelines of the conference, he states that the biggest barrier for institutions in Saudi Arabia and the Gulf as they transition from AI experimentation to production is not a single isolated factor, but an interconnected system encompassing infrastructure, governance, skills, cyber resilience, cost, and operating models.

However, he considers “data readiness” to be the primary obstacle. He adds: “Without a reliable and AI-ready data foundation, even the most advanced infrastructure is insufficient, and pilot projects falter before reaching production.”

Mohammed Amin, Senior Vice President for Central Eastern Europe, Middle East, Türkiye and Africa at Dell Technologies

Data Before the Model

This point appears fundamental to Dell's assessment of the Saudi phase, as the company indicates that 96 percent of Saudi institutions now view AI as a key part of their business strategy, according to its research on the state of innovation and AI.

However, this indicator, despite its importance, does not mean that the path to production has become easy. Many institutions still operate through outdated and fragmented systems, distributed data, inconsistent governance, and limited access to reliable real-time data.

According to Amin, the fastest-advancing institutions are those that treat AI “not as a standalone tool, but as a transformation of the entire operating model.”

Here lies the difference between ambition and operational infrastructure. An institution that wants to use AI for customer service, risk management, predictive maintenance, or patient data analysis not only needs a robust model but also requires its data to be discoverable, governed, reliable, and usable by AI systems in a timely manner.

Amin defines AI-ready data as data that is “discoverable, governed, reliable, and usable by AI systems in real-time.” This definition transforms the discussion from a narrow technical question to an institutional one: Does the institution know where its data is, who can use it, and can it be trusted when fed into a model or intelligent agent?

Data from Sensitive Sectors

In the Saudi banking sector, this could mean linking customer, transaction, and risk data across different environments while maintaining compliance and governance. In hospitals, it involves securely organizing clinical and imaging data so that AI can support diagnosis or improve operations without compromising patient privacy. For government entities, it means unifying citizen and operational data while preserving sovereignty and security controls. As for energy companies, it might involve combining operational, sensor, and geographic data to support predictive maintenance and improve performance.

Dell states that updates to its Dell AI Data Platform specifically target this point, by indexing billions of files and linking them into governed data pipelines. The platform includes capabilities such as GPU-accelerated SQL analytics, achieving up to six times faster performance, and vector indexing up to 12 times faster.

These details might seem technical, but they actually determine the speed at which an institution transitions from a limited experiment to a widely operational AI service. The slower data is accessed or the less organized it is, the more the data pipelines themselves become an operational bottleneck. Amin notes that these capabilities help reduce response time, improve accuracy, and expand AI services with higher efficiency.

Local Operating Economics

As AI transitions to more sensitive and continuous workloads, another question emerges: when does private or institution-controlled infrastructure become more suitable than the public cloud? Amin does not present this as a stark choice between cloud and private infrastructure; he believes the public cloud remains important for experimentation, flexibility, and quick access to AI services. However, he adds that there comes a stage where controlled infrastructure becomes “strategically better,” especially when workloads involve sensitive national or financial data, or when response time requirements are critical.

This aligns with what Dell presented at the conference regarding Deskside Agentic AI, a solution aimed at running some AI agents locally on high-performance workstations, rather than relying entirely on cloud programming interfaces.

The company states that this solution can, in some cases, reach a break-even point with the cost of cloud programming interfaces within three months, and reduce spending by up to 87 percent within two years. Amin interprets these figures from a broader perspective, stating that technology managers in Saudi Arabia must evaluate the economics of AI “over its full lifecycle, not just by focusing on initial infrastructure costs.” The cloud might appear attractive at the outset, but it can become more expensive when running continuous generative or agentic workloads at the scale of a large enterprise.

Processor Efficiency

For Saudi Arabia, this issue is also linked to sectors with regulatory and sensitive natures. Amin acknowledges that the most realistic use cases today are those that deliver clear productive and operational value while maintaining manageable governance.

He points out that private assistants within institutions and workflow in regulated sectors represent a compelling starting point in the Kingdom, due to the strong focus on data security and sovereignty. He also believes that programming assistants are rapidly gaining momentum because they offer direct benefits to development teams.

The transition to production requires not only data and architecture but also infrastructure capable of handling high workload density. In heavy AI environments, processing units are insufficient if data does not move quickly between computing, storage, and applications.

Amin notes that the network design in PowerRack includes a switching capacity exceeding 800 terabits per second per rack, explaining that the practical meaning of this capacity is to eliminate data traffic bottlenecks between GPUs, storage, and applications. The longer GPUs wait for data, the lower the efficiency of infrastructure investment. Conversely, when data moves with low latency, training and inference operations become faster and more effective.

Cooling as a Strategic Factor

This discussion cannot be separated from cooling and power, as AI increases rack density and power requirements within data centers, making cooling a strategic, not just operational, factor.

Amin notes that the ability of Dell PowerCool C7000 to support facility water temperatures up to 40 degrees Celsius means that data centers can operate with higher efficiency in hot climates, reducing reliance on energy-intensive cooling.

In Saudi Arabia, where the government and private sector are investing in sovereign AI infrastructure, he believes that cooling “is no longer merely an operational issue,” but has become linked to scalability, energy efficiency, and long-term viability.

Data and Model Security

Cyber resilience is part of AI readiness; an intelligent system is not reliable if its data is corruptible, its models are exploitable, or its infrastructure is not recoverable. Amin points out that an AI system “is only as reliable as the data and models it operates on,” and a cyberattack that corrupts data or harms a model can have significant consequences.

Therefore, he believes that the maturity of cyber resilience will directly impact the extent to which institutions trust expanding their adoption of AI. Here, Dell offers tools like Cyber Detect, which it claims can detect data corruption resulting from ransomware attacks and accurately identify the last known clean version.

Openness and Sovereignty

With Dell's expanded partnerships with Google, Hugging Face, OpenAI, Palantir, ServiceNow, and SpaceXAI, the company emphasizes that institutions do not want to tie their AI strategy to a single model, cloud platform, or infrastructure package.

This openness, in Amin's view, gives institutions a “choice” and reduces vendor lock-in risks, allowing them to develop their capabilities as technology evolves. This is crucial in a fast-moving market like Saudi Arabia, where integration and interoperability can become strategic advantages in themselves.

When Mohamed Amin was asked about the Saudi sectors that would first require AI-ready infrastructure, he placed government, energy, telecommunications, finance, and smart cities at the forefront, due to the volume of their data, their national importance, and the operational value that AI can unlock.

These sectors are also most closely linked to sovereignty, compliance, and security requirements. Therefore, building a secure and scalable AI infrastructure appears not merely a technical upgrade, but part of institutions' ability to transform the Vision's ambitions into measurable daily operations.

Between Michael Dell's response regarding Saudi Arabia and Mohamed Amin's vision for the region, the picture of the next phase becomes clear. The Kingdom is not entering the AI race merely from the perspective of consumption or experimentation, but from the perspective of building institutional capability.

However, true capability will not be measured solely by the number of data centers or the volume of investment, but by institutions' ability to prepare their data, choose where to run their workloads, manage costs, protect their models and data, and scale their use without losing control or governance.