The FTC has dismissed its case opposing Microsoft's acquisition of Activision Blizzard

The US Federal Trade Commission (FTC) has officially terminated its legal challenge against Microsoft's planned purchase of Activision Blizzard.

On May 22, 2025, the FTC issued an order to dismiss its case, following a failed appeal against Microsoft earlier in the month.

According to the commission, "The public interest is best served by dismissing the administrative litigation of the case." Consequently, they have concluded to formally drop the complaint.

Microsoft's President, Brad Smith, called the outcome a "victory for players" in a statement shared on social media.

"Today's decision is a victory for players across the country and for common sense in Washington D.C.," wrote Smith. "We appreciate the FTC's announcement today."

Microsoft had completed its acquisition of Activision Blizzard in January 2022 for $68.7 billion. However, the FTC attempted to block this merger, arguing it could harm competition in sectors like cloud gaming and subscription services.

The FTC's motion for a preliminary injunction was rejected, and their subsequent appeal was also turned down.

On May 8, 2025, the 9th Circuit US Court of Appeals dismissed the FTC's challenge to the Microsoft-Activision deal.

The court noted, "The panel held that the district court applied the correct legal standards and did not abuse its discretion," indicating the FTC did not sufficiently demonstrate a likely success on merit.