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May 8, 2025 – Washington, D.C.
Microsoft is currently winning a significant legal battle regarding its $69 billion acquisition of Activision Blizzard. The U.S. 9th Circuit Court of Appeals has denied the Federal Trade Commission’s (FTC) attempt to block this acquisition. This court ruling reaffirms the earlier decision made in 2023 by U.S. District Judge Jacqueline Scott Corley, who determined that the FTC failed to prove the merger would harm competition.
The FTC first brought its antitrust lawsuit in 2022, claiming it would enable Microsoft to gain an unfair advantage over the gaming industry by limiting the access of players to blockbuster franchises like Call of Duty, Overwatch, and World of Warcraft. Microsoft has responded to the accusations by securing multiple licensing agreements to ensure that the most popular games are accessible on every platform, including its competitors.
In the fall of 2023, Microsoft completed the deal after receiving approval from U.K. and European regulators. However, despite the FTC’s ongoing legal battles, the latest appeals court decision significantly weakens the agency’s argument.
Microsoft CEO Brad Smith welcomed the court’s decision, describing it as “a strong affirmation” that this deal is beneficial to the game industry. Activision Blizzard echoed that sentiment and said that the deal will boost innovation and increase the reach of its global business.
The FTC is conducting an administrative examination of the acquisition; nevertheless, legal experts believe that reversing the deal at this point is unlikely. Moreover, the court’s decision sets a crucial precedent for how similar mega-deals will be evaluated under current antitrust regulations.
As Activision Blizzard is now officially under Microsoft’s aegis, the company has solidified its status as a key participant in the global gaming market, extending its reach to consoles and PCs, mobile, and cloud-based platforms.
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