Microsoft has successfully overcome a significant legal hurdle in its pursuit of acquiring Activision Blizzard. On May 7, 2025, the U.S. 9th Circuit Court of Appeals ruled in favor of Microsoft, rejecting the Federal Trade Commission’s (FTC) appeal to block the $69 billion acquisition. This decision upholds a lower court’s ruling, which concluded that the FTC failed to prove that the merger would harm competition within the gaming and tech sectors.
The FTC had argued that the merger would give Microsoft an unfair advantage in the console, subscription, and cloud gaming markets, potentially harming consumers and limiting competition. Despite these concerns, the court found that the FTC did not meet the necessary legal standards to justify blocking the deal. This ruling is a significant win for Microsoft, allowing the tech giant to move forward with its largest-ever acquisition without further delay.
This victory follows the approval of the deal by UK regulators, who gave the green light to the merger in late 2023. However, the acquisition still faces scrutiny in other global markets, particularly with regulators in the European Union and other jurisdictions. The FTC has not yet commented on the ruling, and Microsoft has not issued a statement at the time of the decision.
The ruling has broader implications for antitrust enforcement in the tech industry, particularly as large mergers and acquisitions continue to reshape the market. Microsoft’s success in overcoming the FTC’s challenge sets a precedent for future cases, particularly as the tech industry continues to consolidate. This decision marks a pivotal moment in the battle over market control, with the potential to influence regulatory approaches to antitrust in the digital and gaming sectors.
As the acquisition moves forward, Microsoft’s strategies in integrating Activision Blizzard will be closely watched, as the company looks to expand its gaming portfolio and strengthen its position in the competitive gaming and cloud computing markets.
