FTC Ends Legal Fight Against Microsoft Over Activision Merger

After years of legal battles, the U.S. Federal Trade Commission (FTC) has waved the white flag and officially ended its fight against Microsoft. The regulator had tried every available legal avenue to block the Xbox maker’s acquisition of Activision Blizzard King.

With nearly all legal options exhausted, the FTC has withdrawn from the case, clearing the way for the biggest acquisition in the history of the video game industry.

The decision follows a May 7 ruling by the Ninth Circuit Court of Appeals, which sided with a lower court and denied an injunction to stop the merger.

Given this unfavorable outcome, the FTC stated that continuing the litigation would no longer serve the public interest and opted to officially bring its challenge to a close.

"Today’s decision is a victory for players across the country and for common sense in Washington," said Brad Smith, Microsoft President.

Why Did the FTC Want to Block the Deal?

When Microsoft first announced its intention to acquire Activision Blizzard King in 2022, the FTC argued that the deal could pose a serious threat to the gaming industry.

The main concern was that Microsoft was using its financial strength to purchase the publisher of Call of Duty and solidify its already powerful market position.

The FTC warned that this could create a monopoly, as Microsoft might use the acquisition to favor its own platforms by restricting competitors’ access to key content or making games exclusive.

Microsoft denied these claims and responded by signing contracts with Sony, Nintendo, and other platform holders to ensure that Call of Duty and other Activision titles would remain available on their consoles and digital storefronts.

Ultimately, the FTC could not prove its case. Microsoft demonstrated a commitment to a multiplatform strategy, even bringing some of its own games to rival consoles.