FTC Drops Efforts to Block Microsoft’s Activision Blizzard Deal

The saga of Microsoft’s $68.7 billion acquisition of Activision Blizzard, one of the largest deals in the history of the technology and gaming industries, has reached a decisive conclusion.
FTC Drops Efforts to Block Microsoft’s Activision Blizzard Deal
Written by Victoria Mossi

The saga of Microsoft’s $68.7 billion acquisition of Activision Blizzard, one of the largest deals in the history of the technology and gaming industries, has reached a decisive conclusion.

On May 22, 2025, the Federal Trade Commission issued an order dismissing its complaint against the merger, effectively ending a years-long legal battle to block the transaction. This development, documented in an official filing on the FTC’s website, marks the final chapter in a contentious regulatory process that has been closely watched by industry insiders for its implications on antitrust enforcement in the tech sector.

The acquisition, first announced in January 2022, aimed to bring Activision Blizzard—known for blockbuster franchises like Call of Duty, World of Warcraft, and Overwatch—under Microsoft’s Xbox umbrella. The deal promised to reshape the gaming landscape, bolstering Microsoft’s position in a competitive market dominated by Sony and Nintendo. However, it quickly drew scrutiny from regulators worldwide, with the FTC leading the charge in the United States. The agency argued that the merger could stifle competition, particularly in the console gaming market, by giving Microsoft the power to limit access to key titles on rival platforms like Sony’s PlayStation.

The FTC’s initial complaint, filed in December 2022, sought to halt the deal through a preliminary injunction. A federal judge denied this request in July 2023, allowing the acquisition to close in October of that year. Undeterred, the FTC pursued an appeal, contending that the merger posed long-term risks to consumers through potential price increases and reduced innovation. However, a U.S. appeals court recently upheld the lower court’s ruling, rejecting the FTC’s challenge. As reported by WebProNews, the court found insufficient evidence to support the agency’s claims that Microsoft would likely engage in anticompetitive behavior, such as withholding popular titles from competitors.

The dismissal of the FTC’s complaint this week is not merely a procedural footnote but a significant signal of shifting regulatory priorities. Industry analysts note that the decision comes amid a broader reevaluation of antitrust approaches under the current administration, with some suggesting that the FTC may be scaling back aggressive challenges to tech mergers. The agency’s own filing indicates a pragmatic closure, stating that continuing the case no longer aligns with its strategic objectives. This move has been interpreted by legal experts as an acknowledgment of the uphill battle the FTC faced after successive court losses.

For Microsoft, the dismissal is a clear victory, cementing its ownership of Activision Blizzard and paving the way for deeper integration. The company has already begun leveraging the acquisition to expand its Game Pass subscription service, incorporating major titles to attract new users. However, the deal’s ripple effects extend beyond gaming. It underscores the challenges regulators face in applying traditional antitrust frameworks to fast-evolving tech markets, where dominance is often fleeting and innovation can outpace legal proceedings.

As the dust settles, the Microsoft-Activision saga offers a cautionary tale for both regulators and tech giants. While Microsoft emerges stronger, the intense scrutiny it endured signals that future mega-mergers will continue to face rigorous examination, even if the outcomes remain uncertain. For now, the gaming industry braces for a new era under Microsoft’s expanded influence, with competitors and consumers alike watching closely for what comes next.

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