Microsoft has secured a major legal victory in the ongoing battle over its landmark $69 billion acquisition of Activision Blizzard, the creator of popular franchises like Call of Duty. A U.S. federal appeals court has rejected the Federal Trade Commission’s (FTC) attempt to reverse the merger, solidifying Microsoft’s position in the global gaming industry.
The 9th U.S. Circuit Court of Appeals, based in San Francisco, unanimously upheld a prior ruling by District Judge Jacqueline Scott Corley. The court agreed that the FTC had failed to demonstrate a strong likelihood of success in its antitrust claims, which alleged the acquisition could harm competition in the video game console, subscription, and cloud gaming markets.
The FTC initially filed the lawsuit in 2022, seeking to halt the merger temporarily while it pursued a broader administrative challenge. However, after the U.K. and other international regulators approved the deal, Microsoft completed the acquisition in late 2023. Since then, the FTC’s administrative proceedings have been paused, awaiting the outcome of this appeal.
Judge Corley, in her original ruling, determined that the FTC had not shown that Microsoft’s acquisition of Activision would significantly harm market competition. She found no compelling evidence that Microsoft would use its control over Activision’s titles to stifle rival platforms or services.
The recent appellate decision confirms that conclusion. The three-judge panel affirmed that the legal standards used by the lower court were valid and found no basis for granting a preliminary injunction.
While the FTC has declined to comment on the ruling, this outcome represents a decisive win for Microsoft. It paves the way for the tech giant to expand its footprint in gaming, subscription services, and cloud-based platforms without regulatory obstruction—at least for now.
The Activision deal remains the largest acquisition in video game history, signaling Microsoft’s ambitions to reshape the future of interactive entertainment.
