FTC drops antitrust case against Microsoft’s $69Bn Activision Blizzard acquisition

Marks significant shift in agency's approach to antitrust enforcement under President Trump's administration

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The US Federal Trade Commission (FTC) has officially ended its legal challenge against Microsoft’s $69 billion acquisition of Activision Blizzard, marking a significant shift in the agency's approach to antitrust enforcement under President Donald Trump's administration.

The FTC filed an order on May 22, 2025, to dismiss its complaint, stating that continuing the case against the long-closed deal was not in the public interest.

This decision follows a series of legal setbacks for the agency, including a failed appeal earlier this month to block the merger and a court ruling in July 2023 that allowed the deal to proceed.

The acquisition was finalized in October 2023, making it the largest in the gaming industry's history.

FTC Chairman Andrew Ferguson, appointed by President Trump, has indicated a strategic shift in the agency's focus, prioritizing cases that align with the current administration's agenda.

This includes investigations into alleged advertiser collusion involving Elon Musk's social media platform X.

As part of this shift, the FTC has also dropped other cases initiated under previous leadership, such as the one against PepsiCo for price discrimination favoring Walmart.

Microsoft President Brad Smith welcomed the FTC's decision, calling it "a victory for players across the country and for common sense in Washington, D.C."

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. https://t.co/nnmUI76q0l pic.twitter.com/KgLxhZppx3

— Brad Smith (@BradSmi) May 22, 2025

He emphasized that the company's commitment to keeping Activision's popular franchises, including Call of Duty, available across platforms remains unchanged.

The FTC's withdrawal of the case effectively concludes one of the most high-profile antitrust battles in recent years, allowing Microsoft to proceed with integrating Activision Blizzard into its gaming division.

The focus now shifts to how this consolidation will impact competition in the gaming industry, particularly concerning subscription services and cloud gaming platforms.