Microsoft won its appeal in US Federal Trade Commission (FTC) challenge to US$69 billion Activision Blizzard deal on May 7, 2025, after a federal court rejected the agency’s attempt to block the merger.

This decision affirms a 2023 ruling by a lower court, which denied the FTC’s request for a preliminary injunction to block the merger.

A three-judge panel unanimously concluded that the FTC did not show a likelihood of success in its claims that the merger would harm competition.

The court noted that the lower court applied the correct legal standards in its evaluation.

Neither the FTC nor Microsoft have provided comments on the court’s ruling.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Microsoft’s antitrust history shapes today’s regulatory landscape

The Microsoft-Activision case continues a decades-long pattern of antitrust scrutiny toward the tech giant, dating back to its landmark battles in the 1990s.

Unlike earlier cases, Microsoft successfully navigated this regulatory challenge, reflecting the company’s evolved approach to antitrust matters.

Microsoft’s previous antitrust case in the 1990s fundamentally altered the tech landscape, creating space for competitors like Google to emerge and thrive 1.

The earlier antitrust battles with Microsoft established critical precedents that continue to influence how regulators approach tech industry consolidation, though enforcement philosophies have evolved significantly 2.

This case represents a significant departure from Microsoft’s earlier experiences, suggesting the company has internalized key lessons about negotiating with regulators, being more willing to make concessions like its commitment to keep Call of Duty available on PlayStation 3.

The company’s successful defense demonstrates the challenges regulators face when trying to block tech mergers under current antitrust frameworks that prioritize consumer welfare over broader market structure concerns.

2️⃣ The gaming industry’s massive scale gives context to the acquisition’s significance

Microsoft’s $69 billion acquisition represents a significant bet on the future of gaming, which is projected to reach $307 billion globally by 2029, growing at a CAGR of 6.3% 4.