A federal judge has declined to block Microsoft’s $69 billion takeover of video game company Activision Blizzard, delivering a major victory to the tech giant. Despite concerns raised by regulators about potential harm to competition, U.S. District Judge Jacqueline Scott Corley ruled that the merger warranted scrutiny but did not demonstrate serious harm or a likelihood of success in a full trial.
Corley stated that the Federal Trade Commission (FTC), which enforces antitrust laws, failed to raise substantial questions about the merger’s impact on competition in the video game console market, monthly game subscriptions, and cloud-based gaming. Microsoft CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick testified during the court hearing, assuring that the blockbuster game Call of Duty would continue to be available on rival platforms.
In response to the ruling, Kotick expressed that the merger would benefit consumers and workers while fostering competition in the rapidly growing industry. The FTC had requested an injunction to temporarily halt the deal until an August trial could review it, but both companies argued that such a delay would likely lead to the collapse of the agreement.
The FTC has not yet announced whether it will appeal the decision. Chairperson Lina Khan has faced Republican scrutiny in Congress over the commission’s enforcement actions. Corley, a Biden nominee, expressed skepticism about the FTC’s case, particularly regarding the hypothetical harm of removing Call of Duty from rival platforms. Microsoft has committed to ensuring the game’s availability on multiple platforms for at least a decade.