FTC concedes defeat in appeal over Microsoft merger with Activision Blizzard
‘The public interest is best served by dismissing the administrative litigation in this case.’
The Federal Trade Commission (FTC) has finally halted its attempts to block Microsoft's colossal $69 billion merger with Call of Duty maker Activision Blizzard.
It's a notable development that brings a protracted regulatory dispute to a close. Since Microsoft announced its intention to acquire Activision Blizzard in 2022, the FTC made repeated attempts to snuff out the deal in the United States.
The latest and seemingly final chapter in the high-profile skirmish comes after the FTC failed to convince a lower court to issue a preliminary injunction blocking the deal. It subsequently appealed that decision but was again rebuffed earlier this month.
In a new court filing shared by Microsoft president Brad Smith on X, the FTC confirmed it has now thrown in the towel.
"The Commission has determined that the public interest is best served by dismissing the administrative litigation in this case," reads the filing. "Accordingly, it is hereby ordered that the Complaint in this matter be, and it hereby is dismissed."
Smith described the move as a "victory for players across the country" and said Microsoft is "grateful" to the FTC for the announcement.
FTC taps out of monumental regulatory battle with Microsoft
Although the merger was eventually completed in 2023, that didn't stop the FTC from appealing the move—although Microsoft repeatedly overcame the regulator's challenges.
The FTC initially argued the merger would give Microsoft a significant competitive edge over rivals like PlayStation and Nintendo by allowing it to turn major franchises like Call of Duty into platform exclusives.
Microsoft, however, penned multiple agreements with its competitors prior to the deal going through to ensure Call of Duty would remain on platforms like PlayStation for the next decade.
Since the merger was completed, Microsoft has ported other major first-party titles to PlayStation including Indiana Jones and the Great Circle, Forza Horizon 5, Gears of War: Reloaded, and Senua's Saga: Hellblade II.
The Xbox maker has also laid off thousands of workers over the past two years, initially cutting 1,900 roles in January 2024—just months after completing the merger—before slashing another 650 jobs later that year.