FTC Officially Drops Lawsuit Against Microsoft-Activision Blizzard Merger; Two-Year Battle Concludes

The U.S. Federal Trade Commission (FTC) has officially announced the withdrawal of its administrative lawsuit challenging Microsoft's acquisition of Activision Blizzard, marking the end of a protracted legal battle over the gaming industry's largest-ever merger. The case has been a focal point for both the industry and legal circles since the acquisition was completed in 2023.

Microsoft finalized its acquisition of Activision Blizzard in October 2023, after the U.S. District Court for the Northern District of California denied the FTC's request for a preliminary injunction, allowing the merger to proceed. Undeterred, the FTC appealed the decision in December of the same year, seeking to overturn the court's ruling. However, that appeal was ultimately rejected by the court in May 2025, leading the FTC to subsequently announce its withdrawal, stating the move was "in the public interest."

Responding to the development, Microsoft President Brad Smith issued a statement, calling it "a victory for gamers across America and for common sense in Washington. We are grateful for the FTC's decision."

The court's ruling highlighted that the FTC failed to provide evidence that Microsoft would restrict competitors' access to popular titles like "Call of Duty," nor did it demonstrate concrete proof that Microsoft intended to make Activision games Xbox exclusives.

In fact, since the deal's completion, Microsoft has continued to release the "Call of Duty" series on PlayStation platforms. Furthermore, several previously Xbox-exclusive titles, such as "Forza Horizon 5" and "Sea of Thieves," have been made available on PS5.

This month, Microsoft also announced that a classic blockbuster is slated to debut on PlayStation this summer, alongside new releases such as "Senua's Saga: Hellblade II." While the overall acquisition has driven significant revenue growth, Microsoft also implemented large-scale layoffs post-acquisition, drawing further attention to the labor market.

With the FTC's formal withdrawal, this two-year regulatory tug-of-war has finally concluded, and the integration of Microsoft and Activision Blizzard is set to enter a new phase.

via: Eurogamer.net