A U.S. appeals court has dismissed the Federal Trade Commission's attempt to block Microsoft's $68.7 billion purchase of Activision Blizzard

The Federal Trade Commission's (FTC) attempt to halt Microsoft's acquisition of Activision Blizzard was rejected by a US court. The decision was reported by Bloomberg after the 9th Circuit US Court of Appeals upheld Judge Jacqueline Scott Corley's earlier ruling, which opposed the FTC's 2023 move to stop the merger.

Originally announced in January 2022, Microsoft's $68.7 billion acquisition of Activision Blizzard faced challenges from the FTC in 2023. However, these efforts did not succeed. Even though the acquisition was finalized, the FTC lodged an appeal in December 2023.

In their recent verdict, the court concluded that while there were concerns about Microsoft's potential dominance in cloud gaming, the appellate court had used appropriate legal criteria. The FTC failed to demonstrate a likely success in any of its arguments.

The court's ruling stated that the district court did not misuse its discretion nor depend on inaccurate evidence when it agreed that the FTC hadn't proven its case. There was no convincing evidence that the merger would reduce competition substantially.

When comparing Microsoft's exclusive game offerings with those of its competitors, Sony PlayStation and Nintendo, the court noted that it is common for major manufacturers to create first-party exclusives. However, Microsoft has fewer exclusive games available than its counterparts, Sony and Nintendo.

Microsoft and the FTC both refused to comment on the court's decision. According to Bloomberg, the verdict's consequences for an upcoming administrative trial in the FTC's own court remain unclear, as the trial is currently on hold pending this appeal's resolution. The FTC may consider further appeal to the Supreme Court.