On May 7, 2025, the U.S. 9th Circuit Court of Appeals upheld a lower court’s decision, rejecting the Federal Trade Commission’s (FTC) challenge to Microsoft’s $69 billion acquisition of Activision Blizzard. The three-judge panel unanimously agreed that the FTC had not demonstrated a likelihood of success in proving the merger would harm competition.

The FTC initially filed an antitrust lawsuit in 2022, arguing that the merger would disadvantage competitors in the console, subscription, and cloud gaming markets. However, U.S. District Judge Jacqueline Scott Corley ruled in July 2023 that the FTC failed to show substantial anti-competitive effects.

Following the court’s decision, the FTC’s administrative challenge to the deal, which had been paused pending the outcome of the appeal, remains on hold. Microsoft completed the acquisition in late 2023 after receiving approval from UK regulatory authorities.

This ruling marks a significant victory for Microsoft, solidifying its position in the video gaming industry and setting a precedent for future tech industry mergers.

Source; Reuters