The Federal Trade Commission (FTC) has dropped its appeal against Microsoft and its acquisition of Activision Blizzard.
Microsoft sealed the deal to acquire Activision Blizzard for $68.7 billion (£50.9bn) back in October 2023.
It marked the biggest company buyout in the video game industry to date.
However, the FTC has been fighting against the acquisition since plans were announced in 2022.
The FTC’s announcement of a lawsuit to block the acquisition came as it suggested that the deal would “harm competition in multiple dynamic and fast-growing gaming markets”.
It argued the merger would give Microsoft a significant competitive edge over rivals like Playstation and Nintendo by allowing it to turn major franchises like Call of Duty into platform exclusives.
The commission launched an appeal to overturn the acquisition in 2023. However, this was denied by the 9th Circuit Court earlier this month.
It now appears that the saga is over, as the FTC has officially dropped its case.
In an official filing published on Thursday night, the document read: “The Commission has determined that the public interest is best served by dismissing the administrative litigation in this case. It is hereby ordered that the complaint in this matter be, and it hereby is, dismissed.”
Microsoft reacts to FTC dropping Activision Blizzard appeal
Microsoft president Brad Smith reacted with delight to the news that the FTC has dropped its appeal against the acquisition of Activision Blizzard.
In a message on X, he wrote: “Today’s decision is a victory for players across the country and for common sense in Washington, D.C. We are grateful to the FTC for today’s announcement.”
Since Microsoft acquired Activision Blizzard in 2023, the company has kept games such as Call of Duty on PlayStation.
A number of its Xbox Studios titles have been added to other platforms. One example is Obsidian’s Grounded is now available on PlayStation and Nintendo Switch.
The deal for Microsoft to acquire Activision Blizzard was cleared by the UK’s Competition and Markets Authority in 2023.
Microsoft Gaming CEO, Phil Spencer, said at the time: “For the millions of fans who love Activision, Blizzard and King games, we want you to know that today is a good day to play. You are the heart and soul of these franchises, and we are honored to have you in our community.
“Whether you play on Xbox, PlayStation, Nintendo, PC or mobile, you are welcome here. And you will remain welcome, even if Xbox isn’t where you play your favorite franchise. Because when everyone plays, we all win.
“We believe our news today will unlock a world of possibilities for more ways to play.”
Kieran Lynch is an esports journalist who writes about several games including EA Sports FC 25, Call of Duty, Rainbox Six Siege, and more. He previously worked as a sports journalist for MailOnline.
