Microsoft Wins Appeal in FTC Challenge to $69 Billion Activision Blizzard Deal

The decision came in an antitrust lawsuit filed by the Federal Trade Commission in 2022 against Xbox maker Microsoft.

By Reuters | Updated: 8 May 2025 13:11 IST

Microsoft Wins Appeal in FTC Challenge to $69 Billion Activision Blizzard Deal

Photo Credit: Reuters

The Activision Blizzard transaction marked the largest-ever acquisition in the video gaming market.

Highlights

The court said the FTC was not entitled to getting the deal blocked
Microsoft finalised Activision Blizzard's deal in 2023
FTC had filed its case against Microsoft in 2022

A federal appeals court on Wednesday rejected a legal challenge by the Federal Trade Commission to Microsoft's $69 billion (roughly Rs. 5,85,688 crore) purchase of Call of Duty maker Activision Blizzard.

The San Francisco-based 9th US Circuit Court of Appeals upheld a lower judge's order that said the FTC was not entitled to a preliminary injunction blocking the deal, which closed in 2023.

A three-judge panel unanimously ruled that the lower judge had applied the correct legal standards and said the FTC had not shown it was likely to succeed on its claims that the merger would restrict competition.

Xbox Chief Phil Spencer Open to Acquisitions After Activision Deal

A spokesperson for the FTC declined to comment. Microsoft did not immediately respond to a request for comment.

The decision came in an antitrust lawsuit filed by the Federal Trade Commission in 2022 against Xbox maker Microsoft.

The FTC, which enforces antitrust law, separately challenged the merger in an internal administrative action. That proceeding was placed on hold in 2023 during President Joe Biden's administration, pending the 9th Circuit's decision.

Epic Games, EA, Roblox, Other Game Companies Face Consumer Complaint in EU

The Activision Blizzard transaction marked the largest-ever acquisition in the video gaming market. The deal closed in late 2023 after competition authorities in the UK approved it. The purchase also faced regulatory scrutiny in other international markets.

The FTC's lawsuit sought an order freezing the Activision transaction while the agency pursued its administrative challenge.

The agency claimed the Microsoft-Activision tie-up would allow the merged company to fend off competitors to the Xbox console and to its subscription and cloud-based gaming business.

US District Judge Jacqueline Scott Corley had refused to block the acquisition in July 2023, finding that the FTC had not shown Microsoft's ownership of Activision would "substantially lessen competition in the video game library subscription and cloud gaming markets."

The FTC argued in its appeal that the court applied an overly stringent standard in weighing whether to grant a preliminary injunction.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.