FTC vs Microsoft judge’s son works for the company, watchdog seeks recusal

The son of the judge presiding over the FTC vs Microsoft case works at Microsoft, posing a conflict of interest, according to an industry watchdog group.

The Revolving Door Project, part of the Center for Economic and Policy Research, claims the employment of U.S. District Judge Jacqueline Scott Corley’s son sets up a “clear risk of retaliation” from the company should Corley rule against it in the case. Corley oversaw arguments this week and is set to determine whether to grant the FTC’s request to pause Microsoft’s acquisition of Activision Blizzard.

Corley revealed the connection during a pre-hearing conference last week and said her son works outside of Microsoft’s gaming division. However, the Revolving Door Project says the proximity poses risks and called for Corley to recuse herself.

The watchdog sent a letter to Corley on Thursday, obtained by The Washington Post, that says Corley’s son’s employment may violate multiple rules laid out in the Code of Conduct U.S. judges follow. That includes a rule that judges should “avoid impropriety and the appearance of impropriety in all activities.” The Revolving Door Project warns that the conflict risks influencing the judge’s objectivity and could potentially reduce public trust in courts.

The Microsoft-Activision deal has been labelled as high-stakes. Microsoft’s lead lawyer said last week that a ruling against the company could result in a “three-year administrative nightmare” and leave the company on the hook for $3 billion USD (about $3.97 billion CAD) in breakup fees to Activision. Moreover, it could reignite concerns over layoffs at the company — the Revolving Door Project warned that Microsoft’s recent wave of layoffs could be the perfect cover to justify the retaliatory firing of Corley’s son.

However, the stakes are high for more than just Microsoft. There are concerns about the deal’s impact on competition in the gaming sector. The U.K.’s Competition and Markets Authority (CMA) already rejected the deal, saying it would leave gamers with fewer options to choose from. FTC chair Lina Khan also warned that the merger could let Microsoft suppress competition to its Xbox and cloud gaming business. Meanwhile, the European Commission has approved the deal.

Source: The Washington Post Via: Gizmodo