Judge rejects FTC block of Microsoft’s acquisition of Activision Blizzard

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A federal judge on Tuesday ruled against the Federal Trade Commission’s attempt to block Microsoft’s $69 billion purchase of video game publisher Activision Blizzard, dealing a blow to the regulator’s antitrust efforts against Big Tech.

U.S. District Court Judge Jacqueline Scott Corley for the Northern District of California, a Biden appointee, said the FTC failed to show it was likely to prove that the merger would harm consumers and reduce competition. She denied the agency’s request for an injunction that would have postponed the deal’s completion and given the FTC more time to challenge it.

The case was an important test for the FTC’s heightened scrutiny of the technology industry under Chairperson Lina Khan, who was installed by Mr. Biden in 2021 because of her tough stance on what she sees as monopolistic behavior by tech giants such as Amazon, Google and Facebook parent Meta. In the Microsoft trial, the Redmond, Wash., company appeared to have the upper hand in the five-day San Francisco court hearing that ended late last month. The trial showcased testimony by Microsoft Chief Executive Officer Satya Nadella and Activision Blizzard CEO Bobby Kotick, who both pledged to keep Activision’s blockbuster game Call of Duty available to people who play it on consoles — particularly Sony’s PlayStation — that compete with Microsoft’s Xbox.

 

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