The U.S. Federal Trade Commission has formally dropped its administrative case against Microsoft’s 2023 purchase of Activision Blizzard.
Agency Changes Course Under New Leadership
Chairman Andrew Ferguson said continuing the fight was “not in the public interest,” opting to redirect resources toward probes that align more closely with President Donald Trump’s policy agenda.
Those include a fresh investigation into whether advertisers colluded to cut spending on X, formerly Twitter.
Ferguson also shelved a separate price-discrimination complaint accusing PepsiCo of favoring Walmart.
Legal Defeats Weakened the Antitrust Argument
On May 7, the FTC lost an appeal seeking to overturn a federal judge’s refusal to block the Microsoft-Activision tie-up.
While the agency could have pursued an order to unwind the completed deal in a July trial, officials evidently concluded the odds of success were too slim.
Microsoft Welcomes the Decision
Company president Brad Smith called the withdrawal “a victory for players across the country and for common sense in Washington, D.C.”
Historic Gaming Merger Now Settled
At $69 billion, the purchase remains the largest acquisition in video-game history.
Regulators argued the combination could let Microsoft stifle rivals in consoles, subscription services, and cloud gaming.
Microsoft countered that bringing blockbuster titles like “Call of Duty” into its ecosystem would expand access, not restrict it.
With the FTC stepping back, the merger — already cleared by the U.K. and European Union after concessions — appears secure worldwide.
What Comes Next for the FTC
Antitrust lawyers say the retreat signals a strategic pivot from the aggressive stance championed by former Chair Lina Khan.
Observers will watch whether the agency’s new direction yields quicker wins or invites criticism for going soft on Big Tech.
Either way, Microsoft emerges with a mammoth content library intact and regulatory clouds largely dispersed.