The Ninth Circuit U.S. Court of Appeals has upheld a lower court’s decision, ruling that Microsoft’s acquisition of Activision Blizzard does not violate antitrust laws. The Federal Trade Commission (FTC) had attempted to block the merger, arguing that combining the two gaming giants would stifle competition. However, the court found the FTC failed to prove that Microsoft would restrict access to major titles like Call of Duty on rival platforms. The appeals court also dismissed concerns that the deal would harm competition in gaming subscriptions and cloud streaming.
A key part of the FTC’s case centered on platform-exclusive games, but Judge Daniel P. Collins noted in the ruling that “all major manufacturers have engaged in this practice.” Microsoft has also been expanding access to previously exclusive titles, releasing games like Hi-Fi Rush and Indiana Jones and the Great Circle on PlayStation. This shift may signal the FTC will finally concede the merger is here to stay.
Microsoft finalized its $68.7 billion purchase of Activision Blizzard in October 2023, but the deal faced repeated legal challenges from the FTC. This isn’t the first time the Ninth Circuit has rejected the agency’s attempts to block the merger. The FTC also raised concerns about post-merger layoffs, but those objections didn’t sway the court’s decision.
The case appears to be nearing its conclusion, with the courts consistently siding with Microsoft. Unless the FTC pursues further appeals, this long-running legal battle may finally be over.