FTC abandons Biden-era effort to block Microsoft’s acquisition of Activision Blizzard

The Republican-led Federal Trade Commission has decided to drop its opposition to Microsoft’s acquisition of the video game company Activision Blizzard, which produces “Call of Duty.” This move was announced in an order issued by the FTC on Thursday, stating that it is in the best interest of the public to dismiss the legal battle surrounding the acquisition.

The acquisition, valued at $69 billion and announced by Microsoft in January 2022, aimed to enhance the sales of the company’s Xbox gaming console, which has been trailing behind competitors like Sony’s PlayStation and Nintendo. The FTC, under Democratic leadership at the time, had filed a lawsuit in December 2022 to temporarily halt the acquisition, citing concerns that it could stifle competition.

Despite legal challenges, Microsoft completed the purchase in October 2023 after obtaining approval from the UK’s competition watchdog. Microsoft’s vice chairman and president, Brad Smith, welcomed the FTC’s decision, describing it as a win for gamers and rational decision-making.

The FTC, now comprising three Republican commissioners, has been criticized for rushing through cases initiated during the Biden administration. The FTC’s actions regarding a case against PepsiCo and the implementation of a rule requiring upfront fee disclosures by certain businesses have also drawn attention.

The composition of the FTC, with only three Republican members and two Democratic vacancies, remains uncertain. Efforts to replace the Democratic commissioners have not been clarified.