FTC’s Attempt to Temporarily Halt Microsoft-Activision Deal Denied by Appeals Court

The merger between Microsoft and Activision Blizzard, a leading gaming company, is set to proceed following the denial of the Federal Trade Commission’s (FTC) attempt to block the $68.7 billion deal by an appeals court on Friday.

The FTC argued that this merger would have a negative impact on competition in the gaming market, as it would give Microsoft, the owner of Xbox, complete control over popular gaming franchises like “Call of Duty,” “World of Warcraft,” and “Overwatch.”

The FTC claimed that Microsoft would remove these popular titles from rival PlayStation systems, making them exclusive to Xbox. Microsoft has refuted these allegations.

FTC spokesman Douglas Farrar stated on Wednesday that this deal poses a significant threat to competition in cloud gaming, subscription services, and consoles.

The acquisition is currently facing scrutiny from the United Kingdom’s trade authority and is required to meet a July 18 deadline.

Microsoft’s Vice Chairman and President, Brad Smith, expressed his support for the merger, emphasizing that it benefits both competition and consumers. He also criticized the FTC for continuing to pursue a weak case and vowed to oppose any further efforts to delay the merger.

This acquisition follows Microsoft’s previous $7.5 billion deal to acquire ZeniMax Studios, the parent company of Bethesda Softworks, a well-known developer responsible for games like “Fallout” and “The Elder Scrolls,” in 2021.