Microsoft triumphs in the FTC court case over the acquisition of Activision Blizzard in the US, bringing the end of the saga closer

Those interested in gaming must already be aware of the ongoing saga surrounding Microsoft's acquisition of Activision Blizzard to integrate it into the Xbox ecosystem and the Xbox Game Pass service. The process began over a year ago and has faced multiple obstacles such as the UK CMA blocking the deal, but also received positive news like the approval from the EU Regulator. The acquisition is not yet fully closed at the time of writing this article, but it seems that we are nearing the end as today Microsoft has reached an important milestone by winning the court case against the US Federal Trade Commission (FTC), granting permission to proceed with the acquisition of Activision Blizzard in the US. The judge dismissed the FTC's request for an injunction, recognizing Microsoft's commitment to continue offering Call of Duty on PlayStation and introducing it to Nintendo Switch (after a long absence in the latter). Let's also remember that Microsoft has signed contracts with multiple cloud gaming companies to commit to bringing Call of Duty and other game series to their services, as we have already seen happening with Nvidia GeForce Now.

The court determined that the merger will increase consumer access to Activision content, and it would not limit it to the Xbox platform as argued by the FTC. Microsoft's president Brad Smith and Xbox head Phil Spencer welcomed the ruling, stating it supports the benefits of the merger for the gaming industry. Activision Blizzard's CEO, Bobby Kotick, also suggested the merger would stimulate competition in the gaming market. The FTC, however, expressed disappointment with the decision and is planning its next steps to protect competition and consumers.

Shortly after Judge's ruling, the UK Competition and Markets Authority (CMA) and Microsoft agreed to pause their legal battle in the UK to negotiate modifications addressing the CMA's concerns about cloud gaming. While European regulators already approved the deal, Microsoft could technically proceed without the UK and without a US injunction. However, both Microsoft and the CMA prefer to find a resolution in the UK. The FTC has the option to appeal Judge Corley's decision in the US, but given their previous actions in a similar case, they may abandon the case against Microsoft and Activision Blizzard. The ruling allows Microsoft to continue with the acquisition before the July 18th deadline, and now that the main obstacle remaining in the UK seems willing to negotiate, the closing of the purchase appears imminent at this point.