A watchdog group in the industry asserts that the judge who will ultimately decide the fate of Microsoft’s $68.7 billion proposal to acquire Activision Blizzard should recuse herself because her son is employed by Microsoft. Last week, U.S. District Judge Jacqueline Scott Corley disclosed the family relationship during a pre-hearing conference.
Despite Corley’s assertion that her son works outside of the gaming division, the watchdog group maintains that Corley’s proximity to the company creates a conflict of interest.
The Revolving Door Project stated in a letter obtained by The Washington Post on Thursday (29 June) that Corley’s son’s employment at Microsoft may violate multiple rules outlined in the Code of Conduct for US Judges, including one that instructs judges to “avoid impropriety and the appearance of impropriety in all activities.”
The organization warns that this alleged conflict of interest poses a threat to a judge’s impartiality and could even erode public confidence in the judicial system.
The Revolving Door Project wrote –
“The public could rightfully become concerned about a judge being improperly biased if the judge’s child is employed by a corporation whose case the judge is overseeing.”
“It is common sense that a parent would want to support the financial success of their child’s employer in order to support their child’s financial stability and professional prestige.”
This week, Corley is presiding over arguments to determine whether or not to grant the FTC’s request to provisionally halt the merger until an August trial. If Corley chooses not to temporarily suspend the transaction, it may be finalized before the July 18 deadline.
According to the Revolving Door Project, Corley’s son’s employment at the company poses “a clear risk of retaliation.” According to the group, Microsoft could respond to a ruling against them by firing Corley’s son or placing corporate impediments in his path to advancement.
The group stated that Microsoft’s recent round of layoffs could be used as an expedient excuse to justify retaliatory firing. They claimed that the mere prospect of this Succession-like scenario could cause a “crisis of incentives.”
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The Revolving Door Project asserts that the judge’s son’s employment necessitates recusal despite the fact that he is not actively involved with the gaming division. Microsoft’s chief attorney was quoted in the letter as saying last week that a ruling against the company in the merger case could result in a “three-year administrative nightmare.”
According to them, this reorganization could reignite concerns about redundancies affecting numerous company divisions. Similarly, Microsoft may be required to pay Activision $3 billion in dissolution fees if the merger does not proceed.
The letter arrives at a pivotal moment in one of the costliest technology acquisitions to date. The Competition and Markets Authority of the United Kingdom recently rejected the agreement on the grounds that it would reduce the number of options available to gamers.
In contrast, the European Commission approved the acquisition following an investigation. The FTC, headed by its outspokenly interventionist chair Lina Khan, warns that the merger would allow Microsoft to suppress rivals to its Xbox gaming console and its expanding cloud gaming business.