Federal Appeals Court Dismisses FTC Challenge to Microsoft’s Activision Acquisition

A federal appeals court has ruled against the U.S. Federal Trade Commission (FTC) in its effort to halt Microsoft’s $69 billion acquisition of video game giant Activision Blizzard, a deal that was finalized in 2023.

According to Reuters, the 9th U.S. Circuit Court of Appeals, based in San Francisco, affirmed a previous decision by a lower court that denied the FTC’s request for a preliminary injunction. The agency had sought to block the transaction, arguing that the merger could potentially stifle competition in the gaming industry.

The appellate court’s decision, issued Wednesday, marks a significant setback for the FTC’s broader campaign to scrutinize and challenge major tech mergers. Per Reuters, the ruling effectively upholds an earlier finding that the commission failed to demonstrate it was likely to succeed on the merits of its antitrust claims.

Related: FTC Moves Forward with Microsoft Antitrust Probe

The FTC’s legal challenge was part of an ongoing push by the Biden administration to curb what it views as excessive consolidation in the tech sector. Despite those efforts, Microsoft completed its acquisition of Activision Blizzard—publisher of popular franchises like “Call of Duty”—in 2023, after clearing regulatory hurdles in multiple jurisdictions.

The 9th Circuit’s ruling does not prevent the FTC from continuing its administrative case against Microsoft, though the practical implications of such proceedings may be limited given the deal’s completion.

Source: Reuters