The United States Federal Trade Commission (FTC) has officially dropped its long-standing case against Microsoft’s acquisition of Activision Blizzard, putting an end to one of the most high-profile tech antitrust battles in recent history.
While the $68.7 billion deal was finalized back in October 2023, the FTC had continued to challenge its legitimacy well into 2025. Despite a federal court rejecting the FTC’s injunction request in July 2023, the commission pressed on with an appeal that was ultimately denied in early May 2025.
📅 A Legal Fight That Outlived the Acquisition
Many were surprised that the case was still ongoing, given the deal had already closed and Activision Blizzard games—like Call of Duty and Diablo IV—had been added to Xbox Game Pass. However, the FTC remained persistent, citing competition concerns related to potential exclusivity and market dominance.
On May 22, 2025, the FTC finally filed to dismiss the case, stating that “the public interest is best served by dismissing the litigation in this case.” FTC source
🧑⚖️ Court’s Final Verdict
Earlier this month, a U.S. appeals court panel upheld the previous decision to deny the FTC’s injunction. The panel found that the FTC failed “to make an adequate showing as to the likelihood of success on the merits as to any of its theories.”
Essentially, the court found no compelling evidence that Microsoft would restrict competitors’ access to flagship franchises like Call of Duty, one of the FTC’s main concerns throughout the legal proceedings.
🎮 What It Means for the Gaming Industry
Now that the regulatory dust has fully settled, Microsoft is free to move forward with its post-merger plans. Activision Blizzard’s games will likely become a permanent and expanding part of Xbox’s ecosystem—particularly on Game Pass and cloud gaming platforms.
This decision also sends a strong signal to the broader tech industry about the FTC’s evolving approach to mega-mergers, especially in highly competitive digital markets.