The Federal Trade Commission has lost its appeal in a case challenging Microsoft’s $68.7 billion acquisition of Activision Blizzard. In 2023, the FTC sought a preliminary injunction to halt the completion of the deal while pursuing a legal challenge first filed in 2022. The Commission argued that Microsoft’s control over Activision’s content could reduce competition in the gaming market, potentially affecting product quality, pricing, and innovation. However, a district court denied the injunction, and Microsoft finalized the acquisition in October 2023, nearly two years after announcing the deal. The FTC filed an appeal shortly after the district court’s decision.
A federal appeals court panel has now upheld the lower court’s ruling, stating that the FTC failed to present a strong enough case to support its claims. According to the panel’s opinion, the Commission did not sufficiently demonstrate a likelihood of success on the merits under any of its arguments. While the acquisition has been completed, the deal remains under review through an administrative proceeding still pending before the FTC. Both the FTC and Microsoft declined to comment on the latest development.
