The US Federal Trade Commission has dropped its complaint against Microsoft’s acquisition of Activision Blizzard.
On May 22, 2025, the FTC issued an order dismissing its case after it lost its appeal against Microsoft earlier this month.
“The commission has determined that the public interest is best served by dismissing the administrative litigation of the case,” it said. “Accordingly, it is hereby ordered that the complaint in this matter be, and hereby is, dismissed.”
In response, Microsoft president Brad Smith described the decision as a “victory for players” on social media.
“Today’s decision is a victory for players across the country and for common sense in Washington D.C.,” Smith wrote. “We are grateful for the FTC for today’s announcement.”
Microsoft finalised its deal to acquire Activision Blizzard in January 2022 for $68.7 billion. The FTC subsequently attempted to block the merger, believing it would cause a threat to competition in cloud gaming, subscription services, and exclusive first-party titles.
This was denied, and in turn the FTC submitted a preliminary injunction – which was also denied.
On May 8, 2025, the 9th Circuit US Court of Appeals threw out the FTC’s challenge against the Microsoft Activision merger.
“The panel held that the district court applied the correct legal standards and did not abuse its discretion, or rely on clearly erroneous findings, in holding that the FTC failed to make a sufficient evidentiary showing to establish the requisite likelihood of success on the merits of its claim,” the court said.
