The US Federal Trade Commission (FTC) has officially dropped its case against Microsoft’s $69 billion acquisition of video game giant Activision Blizzard, saying the matter was no longer in the public interest.
The announcement came on Thursday, marking a significant reversal by the agency, which had previously argued the blockbuster deal could stifle competition in the gaming industry. The acquisition, which closed in 2023, remains the largest in the history of the video game sector.
Microsoft President Brad Smith welcomed the decision, calling it “a victory for players across the country and for common sense in Washington, DC.”
The FTC had sought to block the deal, citing concerns that the merger would give Microsoft unfair control over the market, particularly with its Xbox console and cloud-based gaming services.
The agency claimed the company could potentially restrict access to Activision titles, including the massively popular Call of Duty, disadvantaging rivals.
However, the FTC lost a key appeal on 7 May after a judge declined to issue a preliminary injunction that would have delayed the merger. Though the agency still had the option to pursue a separate trial to unwind the deal, it has now decided against continuing the effort.
“When challenging a new merger, the FTC typically asks a judge to temporarily block the deal to allow for a full review,” an agency spokesperson said.
“But once a deal closes, the likelihood of reversing it becomes significantly lower, and our resources must be prioritised accordingly.”
The decision to drop the case reflects a broader shift under FTC Chairman Andrew Ferguson, who is moving away from certain enforcement strategies championed by his predecessor, Lina Khan.
On Thursday, the agency also dropped a separate case accusing PepsiCo of engaging in price discrimination that allegedly favoured Walmart.
Ferguson is reportedly refocusing the agency’s enforcement agenda to align more closely with the priorities of former President Donald Trump, including launching a probe into whether advertisers conspired to reduce spending on social media platform X, formerly known as Twitter.
Boluwatife Enome
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