FTC Drops Probe on Microsoft – Activision Deal

The US Federal Trade Commission decided not to pursue a case against Microsoft’s $69 billion acquisition of gaming company Activision Blizzard. This is the result of the agency's focus shift under President Donald Trump’s administration.

The FTC confirmed it was dismissing the case into the long-completed deal, stating it was not in the public interest to continue pursuing it. The decision comes following an effort lasting almost two years from the FTC to block the acquisition, which was completed in late 2023 and first announced in early 2022.

FTC appealed the tie-up shortly after it was confirmed. However, a court denied an injunction earlier this month. It did have the option to attempt to unwind the deal in court in July, which it has not taken. The watchdog has long argued the deal would essentially enable Microsoft to suppress competition in the console and cloud gaming sectors.

Microsoft vice chair and president Brad Smith said the FTC’s decision to end its opposition is a victory for players across the country and for the common sense in Washington DC. Under the Trump administration, FTC’s new chair Andrew Ferguson is moving to shut down some probes initiated by predecessor Lina Khan, as well as setting out plans to use the agency’s resources which are in line with the President’s agenda.