Microsoft wins FTC appeal over Activision Blizzard acquisition

An appeals court has rejected the Federal Trade Commission's challenge to Microsoft's $69 billion acquisition of Activision Blizzard.

As reported by Reuters, the San Francisco-based 9th US Circuit Court of Appeals found the FTC had not proven the merger would negatively impact competition.

The FTC filed an antitrust lawsuit against Microsoft in 2022 to challenge the merger with Activision Blizzard. An internal administrative action was put on hold in 2023, awaiting the 9th Circuit's decision.

Massive deal 

Microsoft’s acquisition of Activision Blizzard became the largest-ever in the games industry after it closed in late 2023 despite facing global regulatory scrutiny. 

In July 2023, US District Judge Jacqueline Scott Corley ruled in favour of Microsoft, rejecting the FTC's request to block the merger. The judge ruled that the FTC had not provided enough evidence to show that the acquisition would reduce competition in subscription and cloud gaming markets.

However, in 2024, the FTC scrutinised Microsoft after investigating the impact of layoffs that had affected 1,900 workers following the acquisition, as well as expressing concerns over the potential "degrading" of the Xbox Game Pass service.

Since the acquisition, Microsoft has honoured its commitment to ensure that key titles such as Call of Duty remain available on non-Xbox platforms.

The FTC may still appeal the decision to the US Supreme Court.