U.S. FTC Officially Withdraws Case Against Microsoft’s $69 Billion Acquisition of Activision Blizzard

Phoenix Technology News, May 23 — Reuters reports that the U.S. Federal Trade Commission (FTC) officially dropped its lawsuit on Thursday seeking to block Microsoft’s $69 billion acquisition of Activision Blizzard. The FTC indicated that pursuing litigation against a deal that has already been completed “does not serve the public interest.”

FTC Chair Andrew Ferguson is reportedly redirecting the agency’s priorities to align with former President Trump’s agenda, including investigations into possible advertiser collusion to reduce spending on X. The FTC had previously lost an appeal on May 7, when a judge rejected its request to halt the acquisition, which closed in 2023.

Microsoft President Brad Smith stated on Thursday that the FTC’s decision represents “a victory for gamers nationwide, and a win for common sense in Washington, D.C.”

This $69 billion transaction is the largest acquisition in the history of the video game industry. The FTC had initially contended that the merger would undermine competition by enabling Microsoft to monopolize the markets for gaming consoles, subscription services, and cloud gaming.