FTC Loses Appeal to Block Microsoft’s Acquisition of Gaming Giant Activision Blizzard

The FTC has lost its appeal of a ruling in its case against Microsoft’s $68.7 billion acquisition of gaming giant Activision Blizzard.

The Verge reports that an appeals court panel has affirmed the denial of the FTC’s request for a preliminary injunction to prevent Microsoft from completing its acquisition of Activision Blizzard. The decision comes nearly two years after the deal was first announced in 2021.

The FTC had initially filed a complaint against the acquisition in 2022, arguing that Microsoft’s control over Activision’s content would give the company “the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition – including competition on product quality, price, and innovation.” However, a district court judge denied the FTC’s request for an injunction in 2023, allowing the deal to be completed in October of the same year.

Following the district court’s ruling, the FTC appealed the decision, but today’s opinion from the appeals court panel has upheld the denial. The panel stated that “given the FTC’s failure to make an adequate showing as to its likelihood of success on the merits as to any of its theories, the district court properly denied the FTC’s motion for a preliminary injunction on that basis.”

Despite the appeals court’s decision, the acquisition remains the subject of an ongoing administrative proceeding before the FTC. Both FTC spokesperson Vicky Graham and Microsoft spokesperson Alex Haurek declined to comment on the matter.

The Microsoft-Activision Blizzard deal, valued at $68.7 billion, has been one of the most significant and closely watched acquisitions in the gaming industry. The merger brings together Microsoft’s gaming division, which includes the Xbox console and popular franchises like Halo and Minecraft, with Activision Blizzard’s extensive portfolio of games, such as Call of Duty, World of Warcraft, and Candy Crush.