FTC Ends Legal Opposition to Microsoft's Acquisition of Activision Blizzard

2025-05-22 business

Washington, Thursday, 22 May 2025.
The FTC has ceased its case against Microsoft’s $68.7 billion acquisition of Activision Blizzard, enabling the tech giant to proceed with the merger, significantly impacting the gaming sector.

Final Resolution After Years of Legal Battles

The Federal Trade Commission officially dismissed its administrative complaint against Microsoft on May 22, 2025, formally ending its prolonged attempt to block the $68.7 billion acquisition of Activision Blizzard [1]. This decision follows the FTC’s recent defeat in the appeals court on May 7, 2025, where a three-judge panel unanimously upheld the original ruling that denied the Commission’s request for a preliminary injunction [2][3].

Legal Timeline and Key Decisions

The legal journey began when Microsoft first announced the acquisition in January 2022. Despite completing the deal in October 2023 [4], the FTC continued its challenge through various legal channels. U.S. District Judge Jacqueline Scott Corley’s initial ruling found that the FTC had failed to demonstrate how Microsoft’s ownership of Activision would ‘substantially lessen competition in the video game library subscription and cloud gaming markets’ [5]. The appeals court subsequently affirmed this position, noting that the FTC had not made ‘a sufficient evidentiary showing’ to support its antitrust claims [6].

Market Impact and Industry Position

The resolution carries significant implications for the gaming industry’s competitive landscape. The court’s analysis specifically addressed concerns about exclusive content, noting that ‘all major manufacturers have engaged in the practice of first-party exclusives,’ with competitors Sony PlayStation and Nintendo actually maintaining higher numbers of exclusive games than Microsoft [7]. Microsoft’s victory represents a landmark moment in the technology sector’s consolidation trends, giving the company control over major gaming franchises such as Call of Duty and World of Warcraft [8].

Corporate Response and Future Outlook

Microsoft’s leadership has welcomed the conclusion, with Vice Chair and President Brad Smith stating, ‘Today’s decision is a victory for players across the country and for common sense in Washington, DC’ [1]. The resolution of this case marks a significant milestone in Microsoft’s gaming strategy, though the full impact of this consolidation on the gaming industry remains to be seen [GPT].

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