The Federal Trade Commission (FTC) has decided to terminate its attempt to block Microsoft’s acquisition of Activision Blizzard, the developer behind the “Call of Duty” franchise, which is valued at $69 billion (approximately Rs. 5,91,491 crore). The announcement was made on Thursday, with the agency stating that continuing the case against the already concluded deal did not serve the public interest.
FTC Chairman Andrew Ferguson aims to redirect the agency’s focus towards initiatives that align with President Donald Trump’s priorities. One of these initiatives includes investigating potential collusion among advertisers to reduce spending on X, a matter first reported by Reuters on Thursday.
Ferguson’s approach indicates a shift away from initiatives launched by former Chair Lina Khan, highlighted by the dismissal of a case on Thursday alleging that PepsiCo engaged in price discrimination that favored Walmart.
The FTC previously faced a setback on May 7 when it lost an appeal aimed at overturning a judge’s ruling that declined to block the Microsoft-Activision deal, which was completed in 2023.
Following the FTC’s announcement, Microsoft President Brad Smith characterized the decision to drop the case as a “victory for players across the country and for common sense in Washington, D.C.”
Typically, when the FTC challenges a merger, the agency requests a temporary injunction to halt the deal and provide time for further examination in its administrative court. However, many deals that face temporary blocks eventually get abandoned.
Although the FTC lost its bid for a temporary block, the agency could have pursued legal action to unwind the acquisition at a trial scheduled for July.
The Activision Blizzard acquisition stands as the most significant deal in the video gaming industry to date. The FTC had argued that this merger would enhance Microsoft’s ability to compete against rivals in the gaming market, particularly concerning its Xbox console and its subscription and cloud-based gaming services.
© Thomson Reuters 2025
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