• US Appeals Court rejected the FTC's appeal to block Microsoft's acquisition of Activision Blizzard, which was completed in October 2023.
• The court found that the FTC failed to demonstrate a likelihood of success on its arguments regarding potential harm to competition.
• Despite the ruling, an administrative proceeding regarding the merger remains pending before the FTC.

The Microsoft acquisition of Activision Blizzard, valued at $68.7 billion, faced opposition from the Federal Trade Commission (FTC) due to antitrust concerns. The FTC sought a preliminary injunction to halt the deal, but this request was denied by a district court in 2023. Microsoft successfully completed the acquisition in October 2023. The US Appeals Court has now upheld the lower court's decision, rejecting the FTC's appeal. The court determined that the FTC did not adequately demonstrate that Microsoft would harm competition in the gaming or cloud streaming markets.

• What: The US Appeals Court upheld the district court's denial of the FTC's request for a preliminary injunction against Microsoft's acquisition of Activision Blizzard.
• Who: Key players include Microsoft, Activision Blizzard, the Federal Trade Commission (FTC), Judge Daniel P. Collins, and Judge Jacqueline Scott Corley.
• When: The acquisition was initially announced in 2022 and completed in October 2023. The appeal was decided on May 7, 2025.
• Where: The legal proceedings took place in the US Ninth Circuit Court of Appeals.

The Appeals Court's decision marks a significant defeat for the FTC in its attempt to block the Microsoft-Activision Blizzard merger. The court's finding that the FTC failed to demonstrate a likelihood of success on the merits underscores the challenges antitrust regulators face in rapidly evolving technology markets. The ruling could influence future FTC reviews of similar deals. Despite the court's decision, the ongoing administrative proceeding suggests the FTC may continue to scrutinize Microsoft's conduct post-acquisition, although the impact of this proceeding is uncertain.

The US Appeals Court's decision has solidified Microsoft's $69 billion acquisition of Activision Blizzard, marking a major turning point in the gaming industry. Despite the FTC's ongoing administrative proceeding, the court's ruling indicates a difficult path ahead for the FTC's challenge to the merger. This acquisition, the largest in gaming history, is expected to have a wide-ranging impact, potentially accelerating cloud gaming adoption and shifting the industry towards subscription models. While Microsoft has committed to keeping "Call of Duty" on PlayStation, concerns remain about the long-term effects on competition, particularly regarding the potential disadvantage for third-party publishers and reduced investment in high-quality content. The completed acquisition gives Microsoft control over major game franchises and expands its reach in the console, subscription, and cloud gaming markets, but the long-term consequences for innovation, consumer choice, and the balance of power within the gaming ecosystem remain to be seen.