The US Federal Trade Commission (FTC) has formally ended its legal challenge against Microsoft’s $69bn acquisition of video game company Activision Blizzard.
In a press statement, FTC said: “The Commission has determined that the public interest is best served by dismissing the administrative litigation in this case. Accordingly, it is hereby ordered that the complaint in this matter be, and it hereby is, dismissed.”
Microsoft acquired Activision Blizzard in 2023 to enhance its presence in the video gaming market, featuring titles such as “Call of Duty”.
It marked the largest-ever transaction in the video gaming market.
The deal, however, faced scrutiny for potential antitrust issues.
The FTC had previously argued that the Activision Blizzard acquisition would give Microsoft an unfair edge in the gaming industry, particularly in the markets for the Xbox console, gaming subscriptions, and cloud-based services.
The agency stated that continuing the case was no longer in the public interest, given that the transaction had already been completed.
Earlier in May 2025, the FTC lost an appeal which aimed to overturn a judge’s ruling against blocking the Microsoft-Activision merger.
FTC chairman Andrew Ferguson was cited by Reuters as saying that the agency is aiming to align its efforts with US President Donald Trump’s agenda.
One such case involves examining whether advertisers coordinated efforts to reduce spending on the social media platform X.
In response to the FTC’s latest move, Microsoft president Brad Smith said on LinkedIn platform: “Today’s decision is a victory for players across the country and for common sense in Washington, D.C. We are grateful to the FTC for today’s announcement.”
Sign up for our daily news round-up!
Give your business an edge with our leading industry insights.
