FTC Drops Case Against Microsoft in Activision Blizzard Deal: Conclusion of US Federal Trade Commission Lawsuit

FTC Officially Withdraws Case Against Microsoft’s Activision Blizzard Acquisition

In a significant development for the gaming industry, the U. S.Federal Trade Commission (FTC) has formally dropped its legal challenge against Microsoft regarding its acquisition of Activision Blizzard King. This decision, announced on May 22, 2025, marks the conclusion of the FTC’s efforts to obstruct what is deemed the largest acquisition in video game history.

The Legal Journey

Microsoft’s acquisition announcement took place in early 2022, soon followed by the FTC filing a lawsuit against the tech giant by the end of the same year. This initiated a protracted legal battle that persisted even after the FTC faced significant setbacks in its pursuit to prevent the merger. Just earlier this month, the agency faced another defeat when it lost its last attempt to block the acquisition and decided to discontinue its litigation efforts.

Court Rulings Highlight FTC’s Challenges

According to the official filing, “On May 7, 2025, the Ninth Circuit affirmed the decision of the United States District Court for the Northern District of California, FTC v. Microsoft Corp…, denying the Commission’s application for a preliminary injunction to block the acquisition of Activision Blizzard, Inc.by Microsoft Corp.”These judicial outcomes underscored the difficulty the FTC faced in justifying its position against the deal.

FTC’s Dismissal Statement

In its conclusion, the FTC stated, “The Commission has determined that the public interest is best served by dismissing the administrative litigation in this case. Accordingly, it is hereby ordered that the Complaint in this matter be, and it hereby is, dismissed by the Commission.”

Microsoft’s Response

Reacting to the FTC’s decision, Brad Smith, Vice Chair and President of Microsoft, expressed his satisfaction on social media, commenting on the decision as “a victory for players across the country and for common sense in Washington, D. C.We are grateful to the FTC for today’s announcement.”

Implications of the Acquisition

Despite successfully completing the acquisition in October 2023, Microsoft remained under scrutiny from the FTC regarding subsequent actions, including price adjustments to Game Pass and significant layoffs affecting thousands of employees. These developments have kept the conversation around the merger active, drawing attention from various stakeholders in the industry.

As the repercussions of this acquisition unfold, many are keenly observing how the gaming landscape will be shaped in the coming years.

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