Appeals court once again upholds Microsoft's acquisition of Activision Blizzard

The Ninth Circuit US Court of Appeals has upheld a lower court's ruling that Microsoft's acquisition of Activision Blizzard did not violate antitrust laws. The Federal Trade Commission had sued to block the merger of these large gaming brands on claims that the new entity would fall afoul of antitrust laws. In the court's ruling, released today, the FTC failed to prove that Microsoft would have blocked access to popular titles such as Call of Duty on hardware owned by other gaming brands. The appeals court was also unswayed by the FTC's arguments that the deal would have lessened competition in gaming subscription services and cloud streaming. The issue of platform-exclusive titles was one of the core tenets of the FTC's latest charge against this acquisition. However, the opinion written by Judge Daniel P. Collins observed that "all major manufacturers have engaged in this practice." And as Microsoft has been making more and more of its once-exclusive titles available on new hardware, this may mean that the competition agency will finally accept the deal as done. The $68.7 billion deal for Microsoft to buy Activision Blizzard closed in October 2023, but the acquisition has faced multiple challenges from the FTC at varying stages of the process. In fact, this isn't the first time the Ninth Circuit Court has rejected the agency's efforts to block the merger. The competition agency also raised alarms about layoffs after the merger closed.This article originally appeared on Engadget at https://www.engadget.com/gaming/appeals-court-once-again-upholds-microsofts-acquisition-of-activision-blizzard-211008049.html?src=rss

May 7, 2025 - 23:10

Appeals court once again upholds Microsoft's acquisition of Activision Blizzard

The Ninth Circuit US Court of Appeals has upheld a lower court's ruling that Microsoft's acquisition of Activision Blizzard did not violate antitrust laws. The Federal Trade Commission had sued to block the merger of these large gaming brands on claims that the new entity would fall afoul of antitrust laws. In the court's ruling, released today, the FTC failed to prove that Microsoft would have blocked access to popular titles such as Call of Duty on hardware owned by other gaming brands. The appeals court was also unswayed by the FTC's arguments that the deal would have lessened competition in gaming subscription services and cloud streaming.

The issue of platform-exclusive titles was one of the core tenets of the FTC's latest charge against this acquisition. However, the opinion written by Judge Daniel P. Collins observed that "all major manufacturers have engaged in this practice." And as Microsoft has been making more and more of its once-exclusive titles available on new hardware, this may mean that the competition agency will finally accept the deal as done.

The $68.7 billion deal for Microsoft to buy Activision Blizzard closed in October 2023, but the acquisition has faced multiple challenges from the FTC at varying stages of the process. In fact, this isn't the first time the Ninth Circuit Court has rejected the agency's efforts to block the merger. The competition agency also raised alarms about layoffs after the merger closed.This article originally appeared on Engadget at https://www.engadget.com/gaming/appeals-court-once-again-upholds-microsofts-acquisition-of-activision-blizzard-211008049.html?src=rss