Microsoft wins appeal in FTC challenge to $69 billion Activision Blizzard deal

A federal appeals court rejected a legal challenge by the FTC to Microsoft’s $69 billion purchase of “Call of Duty” maker Activision Blizzard.

A federal appeals court on Wednesday rejected a legal challenge by the Federal Trade Commission to Microsoft's $69 billion purchase of “Call of Duty” maker Activision Blizzard.

The San Francisco-based 9th U.S. Circuit Court of Appeals upheld a lower judge's order that said the FTC was not entitled to a preliminary injunction blocking the deal, which closed in 2023.

A three-judge panel unanimously ruled that the lower judge had applied the correct legal standards and said the FTC had not shown it was likely to succeed on its claims that the merger would restrict competition.

A spokesperson for the FTC declined to comment. Microsoft did not immediately respond to a request for comment.

The decision came in an antitrust lawsuit filed by the Federal Trade Commission in 2022 against Xbox maker Microsoft.

The FTC, which enforces antitrust law, separately challenged the merger in an internal administrative action. That proceeding was placed on hold in 2023 during President Joe Biden's administration, pending the 9th Circuit's decision.

The Activision Blizzard transaction marked the largest-ever acquisition in the video gaming market. The deal closed in late 2023 after competition authorities in the UK approved it. The purchase also faced regulatory scrutiny in other international markets.