FTC Likely to Drop Its Opposition to Microsoft's Activision Blizzard Takeover

According to US media reports, a US appeals court has upheld the rejection of an appeal by the US competition regulator, the FTC, against Microsoft's takeover of Activision Blizzard. Although the FTC has other legal options, observers say this is unlikely given the change in leadership at the FTC brought about by the Trump administration.

The Federal Trade Commission (FTC) has opposed (in German) the deal since the announcement (in German) of the largest corporate takeover in the gaming industry. Nevertheless, Microsoft's acquisition of Activision Blizzard has been completed (in German) on the corporate side. In the meantime, there have even been several waves of consolidation (in German), with numerous employees losing their jobs.

However, from a formal legal standpoint, the deal was, and still is, not yet 100 percent finalised. The FTC had filed an appeal after the court of first instance ruled that the deal did not violate U.S. competition law. In 2024, the appeal was rejected by a district judge, prompting the FTC to take legal action against this rejection. According to US media reports, the competent appeals court has now ruled that the dismissal of the appeal was lawful. This leaves the FTC with few options to challenge the deal.

One remaining option, according to media reports, would be to take the case to the US Supreme Court. However, it is not only questionable whether the highest US court would accept the case, but also, given the dominance of conservative judges, any ruling would likely favour businesses over regulatory authorities.

Another possibility would be to revive the investigations that have been suspended pending the ruling. However, observers in the US also consider this option rather unlikely.

Following the change in the White House, the FTC also has a new leader. Lina Khan, known for her strong stance against market concentration, has been replaced by Andrew Ferguson, who is seen as more cautious on consumer protection issues. In short, it is likely that the FTC will drop its opposition to the deal.