Game Over: FTC Stops Trying To Defeat Microsoft's $69B Activision Deal
Some boss battles are just too daunting, which the Federal Trade Commission has discovered in its ongoing effort to defeat Microsoft's $69 billion takeover of Activision-Blizzard. Or more accurately, it was ongoing. In what can be likened to the legal version of rage-quitting, the FTC dropped its case against Microsoft, saying that it was in the public's best interest to dismiss its litigation.
The not-so-abrupt decision to stop battling Microsoft came after the Ninth Circuit recently affirmed a previous decision by the United States District Court for the Northern District of California to deny the FTC's application for a preliminary injunction to block the game-changing acquisition. After which, it took Microsoft all of two nanoseconds to acknowledge on X, calling it a "victory for players."
"Today's decision is a victory for players across the country and for common sense in Washington, D.C," Brad Smith, Vice Chair and President of Microsoft, wrote on X. "We are grateful to the FTC for today's announcement."
Smith also linked to the succinct order (PDF), which finally puts the matter to rest.
The FTC originally sought to block the mega deal over concerns that the merger would ultimately harm competition and lead to less choice for gamers. Part of the concern was rooted in Microsoft gaining control of the super-popular Call of Duty franchise, and whether it would continue to be offered on platforms outside of Xbox and Windows (and specifically, Sony PlayStation consoles). The FTC also had concerns over the deal's implications on mobile gaming.
Microsoft fired back at the FTC's lawsuit, claiming in 2022 that the deal would make Activision's games "more broadly available" through platform expansions "like Nintendo." Microsoft would go on to make key concessions in order to win regulatory approval where needed (like the UK). One of those concessions was giving Ubisoft the rights to release Activision's current and future titles to cloud streaming services for 15 years, which in turn paved the way for the return of some classic shooters.
In any event, the matter is now officially settled a year and a half after Microsoft closed the deal.
