Appeals Court Upholds Ruling Against Injunction
The Federal Trade Commission (FTC) has lost its appeal against a court ruling that allowed Microsoft to proceed with its $68.7 billion acquisition of Activision Blizzard. The decision marks another setback for the agency’s efforts to block the high-profile gaming industry merger.
In 2023, the FTC had asked for a preliminary injunction to halt the acquisition. The goal was to stop Microsoft and Activision from closing the deal while the FTC pursued its legal challenge, which began in 2022.
However, a district court judge rejected that request. The very next day, the FTC appealed the ruling. Despite the appeal, the deal was finalised in October 2023—almost two years after its original announcement.
Appeals Court Finds FTC Case Lacking
The US Court of Appeals has now affirmed the district court’s decision. According to the panel’s opinion, the FTC did not adequately demonstrate its likelihood of winning the case based on any of its legal arguments.
As noted in the ruling, the FTC failed to show Microsoft would have the means and motivation to harm competition by restricting access to Activision’s popular gaming content.
The court stated that without a strong chance of success on these claims, blocking the merger was not justified.
Case Remains Open at Administrative Level
Although Microsoft completed the acquisition in 2023, the case is still active within the FTC’s own administrative process. This internal review could continue to explore whether the merger violates antitrust laws, though its impact may now be limited.
Neither parties involved have offered comments on the appeals court’s decision. FTC spokesperson Vicky Graham and Microsoft’s Alex Haurek both declined to speak on the matter.
with inputs from Reuters
