The U.S. Federal Trade Commission (FTC) has officially ended its challenge to Microsoft’s $69 billion Activision Blizzard acquisition, a deal Microsoft finalized in October 2023. The decision, announced May 22, concludes nearly two years of regulatory scrutiny over the major tech and gaming merger.
The FTC stated in its order, “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.”
This development significantly clears uncertainty for Microsoft’s integration of Activision Blizzard’s portfolio, including renowned franchises like “Call of Duty.” It solidifies Microsoft’s gaming powerhouse status, enabling Xbox Game Pass expansion, though Activision games were not expected initially. The FTC’s withdrawal coincides with shifts in agency enforcement priorities under its new leadership.
The agency’s move to stand down follows several legal setbacks. Notably, the FTC lost a crucial appeal on May 7, 2025, which aimed to reverse an earlier court ruling denying a preliminary injunction to block the deal.
Microsoft President Brad Smith praised the decision, calling it “a victory for players across the country and for common sense in Washington, D.C.”
A Shifting FTC Strategy?
The FTC’s conclusion of the Activision Blizzard case occurs as Chairman Andrew Ferguson reportedly redirects agency resources. Reuters indicated this includes new probes, such as one into advertisers on social media platform X.
This contrasts with the agency dropping other ongoing actions, like a price discrimination case against PepsiCo, also reported by Reuters. Some commentators saw the FTC’s prolonged effort against the already-closed Microsoft deal as misguided, especially considering Microsoft’s concessions and approvals from other global regulators, including those of China.
Global Hurdles and Protracted Battles
Microsoft’s journey to acquire Activision Blizzard, initiated in early 2022, involved navigating a complex web of international regulatory reviews. While the FTC pursued its case in the U.S., other global bodies also scrutinized the merger.
The UK’s Competition and Markets Authority (CMA), for instance, initially raised concerns over cloud gaming dominance. However, the CMA ultimately approved the deal in October 2023.
This approval followed Microsoft’s agreement to divest cloud streaming rights for Activision games to Ubisoft for 15 years, a concession the CMA described as a “gamechanger” ensuring Microsoft could not “have a stranglehold over this important and rapidly developing market,” according to CMA Chief Executive Sarah Cardell.
Before the UK’s decision, Microsoft had already secured approvals from other territories, including Taiwan’s Fair Trade Commission in October 2023. Despite these international green lights, the FTC persisted.
Even after Microsoft initially won its court fight against the FTC’s injunction request in July 2023, the agency appealed that decision, losing that case later.
Contentious Investigation and Final Resolution
The regulatory process was not without its sharp disagreements. Early in the investigation, in March 2023, the FTC accused Microsoft of withholding documents. The agency even sought a court order, detailed in an FTC motion, to compel Microsoft to produce the requested information.
Throughout this period, Microsoft publicly stated its commitment to game accessibility, including striking 10-year deals to ensure “Call of Duty” availability on competing platforms.
The FTC’s formal dismissal of its complaint now closes the final regulatory chapter on this landmark acquisition, which was completed in October 2023. This allows Microsoft to proceed without the lingering possibility of the deal being unwound. The FTC’s loss marks a historic shift and may result in an evolution of regulatory strategies for the tech sector.
