FTC Drops Case Against Microsoft Regarding Activision Blizzard Merger

FTC Withdraws Case Against Microsoft’s Activision Blizzard Acquisition

In a recent development reported by The Verge, the US Federal Trade Commission (FTC) has officially withdrawn its legal case against Microsoft concerning the acquisition of Activision Blizzard King. As of May 22, 2025, the FTC has filed a motion to dismiss the case, effectively concluding its efforts to prevent what has become the largest acquisition in the history of the video game industry.

A Timeline of Events

Microsoft initially announced its plan to acquire Activision Blizzard King in January 2022. However, by December of the same year, the FTC had initiated legal proceedings against the tech giant. This marked the beginning of a protracted legal battle, culminating in the recent dismissal of the case after the FTC’s unsuccessful attempt to impose a significant obstacle to the merger.

On May 7, 2025, a pivotal ruling from the Ninth Circuit confirmed the earlier decision of the United States District Court for the Northern District of California, which denied the FTC’s request for a preliminary injunction to block the acquisition. The court’s affirmation indicated a clear resolution in favor of Microsoft.

FTC’s Conclusion

The FTC, despite its determined efforts over the past year and a half, concluded that “the public interest is best served by dismissing the administrative litigation in this case.” In a formal order, the agency specified that the complaint regarding Microsoft’s acquisition is hereby dismissed.

Reactions from Microsoft Leadership

Reacting to this significant ruling, Microsoft’s Vice Chair and President, Brad Smith, expressed his satisfaction, stating, “Today’s decision is 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.”This sentiment reflects a broader positive response within the industry and among gaming enthusiasts.

Impact After the Acquisition

Although Microsoft finalized its acquisition of Activision Blizzard King in October 2023, the FTC’s scrutiny has not entirely ceased. Following the merger, the agency has voiced concerns regarding Microsoft’s strategic decisions, particularly its notable decisions such as the increase in Game Pass pricing and significant workforce reductions.

This conclusion of the FTC case marks a significant milestone for Microsoft as it solidifies its position within the gaming sector, showcasing its resilience in navigating regulatory challenges.

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