FTC Drops Microsoft Case

Drama

23 May 2025 12:31

The U.S. Federal Trade Commission (FTC) has officially ended its legal challenge against Microsoft’s $68.7 billion acquisition of Activision Blizzard, marking a significant milestone in the long-running regulatory battle over one of the gaming industry's largest mergers.

In a formal order issued on May 22, the FTC dismissed its complaint, following a series of legal defeats, including a recent setback in the U.S. Court of Appeals. The Commission stated, “The commission has determined that the public interest is best served by dismissing the administrative litigation of the case. Accordingly, it is hereby ordered that the complaint in this matter be, and hereby is, dismissed.”

Microsoft President Brad Smith welcomed the news, framing it as a positive outcome for consumers. “Today’s decision is a victory for players across the country and for common sense in Washington D.C.,” Smith posted on social media. “We are grateful for the FTC for today’s announcement.”

The FTC originally filed its complaint shortly after Microsoft finalized its blockbuster acquisition of Activision Blizzard in January 2022. The agency argued that the deal could pose a threat to competition, particularly in areas such as cloud gaming, game subscription services, and exclusivity for first-party titles. However, its legal arguments failed to gain traction in court.

After an initial injunction was denied, the FTC escalated the case to the 9th Circuit Court of Appeals, which ultimately rejected the challenge on May 8, 2025, clearing the way for Microsoft to proceed without further legal hurdles in the U.S.

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Tags: Microsoft

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