FTC Withdraws Case Against Microsoft-Activision Merger, Citing Public Interest

The decision marks the conclusion of a lengthy legal battle over a deal that had already been completed in 2023. The FTC had previously appealed a ruling that declined to block the transaction but lost the appeal earlier this month. With limited legal avenues remaining, the agency announced Thursday that continuing the case would not serve the public interest.

Per Reuters, the Microsoft-Activision merger was the largest acquisition in gaming history, placing high-profile titles like Call of Duty under Microsoft’s control. The FTC had argued the deal could stifle competition, particularly in the cloud and subscription-based gaming sectors where Microsoft holds a growing presence.

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

The agency typically seeks temporary court orders to delay mergers while it prepares cases before its administrative law judges. However, once a deal is finalized—as in this case—it becomes significantly harder to unwind. Although a trial had been scheduled for July, Thursday’s decision signals the FTC will no longer pursue that route.

Microsoft welcomed the FTC’s move. Company President Brad Smith called it “a victory for players across the country and for common sense in Washington, D.C.,” in comments made Thursday.

The decision reflects broader shifts within the FTC under Chairman Andrew Ferguson. According to Reuters, Ferguson is steering the commission’s resources toward priorities aligned with former President Donald Trump’s policy agenda. One such focus includes a probe into alleged advertiser collusion to reduce spending on social media platform X, first reported by Reuters.

In a further indication of the agency’s changing direction, the FTC also dropped another case on Thursday that had accused PepsiCo of discriminatory pricing practices that allegedly favored Walmart.

Source: Reuters