Influencer Editorial Team
The Federal Trade Commission has officially abandoned its attempt to block Microsoft’s $69 billion acquisition of Activision Blizzard, marking the end of one of the most high-profile antitrust challenges initiated during the Biden administration.
In an order issued Thursday, the FTC stated that it would dismiss the case, concluding that “the public interest is best served by dismissing the administrative litigation in this case.” This decision comes after a series of legal defeats for the agency, including a July 2023 denial by a U.S. District Court and a recent rejection by a federal appeals court.
Microsoft’s acquisition of Activision—announced in January 2022—was one of the largest in tech industry history. The deal was strategically aimed at strengthening Microsoft’s Xbox brand, which has lagged behind Sony’s PlayStation and Nintendo in console sales. The FTC, under then-Chairwoman Lina Khan, filed a lawsuit in December 2022 to halt the deal, citing concerns that it would limit competition by giving Microsoft control over key gaming content.
Despite the initial legal challenges, Microsoft finalized the acquisition in October 2023 after receiving approval from the UK’s competition regulator.
Brad Smith, Microsoft’s vice chair and president, called the FTC’s move “a victory for gamers and common sense in Washington” in a statement posted on X.
This was the second legal case the FTC dropped on the same day. Earlier, the agency also dismissed a lawsuit filed against PepsiCo in the final days of the Biden administration. That case had accused PepsiCo of providing unfair price advantages to Walmart, a move current FTC Chairman Andrew Ferguson labeled a “dubious political stunt.”
The current makeup of the FTC includes three Republican commissioners, with the status of the two previously Democratic-held seats uncertain. Lina Khan stepped down when President Trump took office, and Democratic commissioners Rebecca Slaughter and Alvaro Bedoya were later removed—sparking a legal challenge over the legality of their dismissal.
While the FTC has rolled back several Biden-era initiatives, it has allowed others to proceed. A recent rule requiring upfront fee disclosures from ticket sellers, hotels, and rental platforms went into effect this month.
