FTC drops case over Microsoft's $69 billion Activision Blizzard deal

Microsoft’s $69 Billion Activision Blizzard Deal and FTC’s Withdrawal: A Game-Changing Moment in Tech Industry In a massive big blow to the tech and gaming space, the United States Federal Trade Commission (FTC) has now withdrawn its legal challenge to Microsoft’s $69 billion Take-Two Interactive deal to buy Activision Blizzard. The action concludes one of the most closely watched antitrust cases in recent memory, and clears the way for Microsoft to further dominate the.

Deal Background Microsoft said in January that it plans to buy Activision Blizzard, the maker of blockbuster franchises like Call of Duty, World of Warcraft and Candy Crush, for an eye-popping $69 billion. The acquisition would have been the biggest in Microsoft’s history and among the largest ever in the gaming business.

The strategic shift was meant to ramp up Microsoft’s gaming presence — especially via its Xbox console and Game Pass subscription — in the ATM business. The company hoped to be able to offer an even broader library of games to its users on both consoles, PCs and mobile devices in the future. FTC's Concern and Legal Action

Regulators around the world soon came to scrutinize the deal, once it was announced. At that time, the FTC filed a lawsuit claiming the merger would hurt competition and could create a gaming market monopoly. The commission said Microsoft could deny access to big gaming titles like Call of Duty on rival platforms like Sony’s PlayStation. The agency was concerned that such a move would reduce choice for consumers and harm both gamers and smaller gaming companies.

n order to stop the deal from closing, the FTC asked the court for a preliminary injunction. But the FTC lost the case, with the court claiming that the agency failed to prove the merger would significantly reduce competition. The ruling was a significant defeat for the F.T.C. Deal closed and end judgmentNotwithstanding the continuing legalgripes, Microsoft had already proceeded with the acquisition of Activision in October 2023,after securing clearances from all relevant regulatory authorities in the UK, European Commission and

Yet the F.T.C. pressed on with its case by appealing. But in May 2025 it officially withdrew its case. That means Microsoft has full legal permission in the U.S. to go ahead with Activision Blizzard as an addition to its holdings. Microsoft’s Reaction Brad Smith, Microsoft’s Vice Chair and President, reacted to the FTC decision by framing it as a win for players and an example of common sense regulation. He stressed that Microsoft is determined to extend

The deal is expected to have wide-ranging implications for the gaming industry. This course could change the gaming industry, in which the idea of a handful of intellectual property silos goosed by a few characters is potentially upended by Microsoft’s ownership of these legendary franchises. We would suspect that Game Pass has made off like the bandits here, offering top games to subscribers at a discount compared to standard pricing. At the same time, the deal is reigniting debate about industry consolidation and the prospects for competition. With fewer indies and more megas, regulators could be even warier.

The FTC’s decision to drop its case marks the end of a long and controversial chapter in the Microsoft-Activision saga. It is a defining moment not just for Microsoft, but for the entire tech and gaming industry. As the dust settles, all eyes will now be on how Microsoft leverages its new assets and whether it can deliver on its promise to make gaming more accessible and inclusive for all.

reigniting debate about industry consolidation and the prospects for competition. With fewer indies and more megas, regulators could be