Appeals court once again upholds Microsoft’s acquisition of Activision Blizzard

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Appeals court once again upholds Microsoft's acquisition of Activision Blizzard

The Ninth Circuit US 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 it would harm competition in the gaming industry. However, the court found the FTC failed to prove Microsoft would restrict access to major titles like Call of Duty on rival platforms or significantly reduce competition in gaming subscriptions and cloud streaming.

A key part of the FTC’s case centered on concerns about platform-exclusive games. But in the court’s opinion, Judge Daniel P. Collins noted that exclusive titles are common across the industry. Microsoft has also been expanding access to previously exclusive games—such as Hi-Fi Rush and Forza Horizon 5—on competing consoles, further weakening the FTC’s argument.

Microsoft’s $68.7 billion purchase of Activision Blizzard officially closed in October 2023, but the FTC continued challenging the deal. 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 issues didn’t sway the court’s latest decision.

With this ruling, the legal battle over the acquisition appears to be nearing its end, leaving Microsoft free to move forward with its plans for Activision Blizzard.