A US appeals court on Friday denied the Federal Trade Commission’s request to pause Microsoft’s $69bn (£53bn) acquisition of Activision Blizzard, the maker of Call of Duty.
This decision clears one of the remaining obstacles that Microsoft faced in completing the deal and expanding its gaming business.
The FTC also requested a similar stay from Judge Jacqueline Scott Corley of the US District Court in northern California, but she rejected the request on Thursday.
The FTC has not yet responded to a request for comment.
Microsoft’s President, Brad Smith, stated, “We appreciate the ninth circuit’s swift response denying the FTC’s motion to further delay the deal. This brings us another step closer to the finish line in this marathon of global regulatory reviews.”
The deal, the largest in the history of the video game industry, still requires approval in the United Kingdom.
The Competition and Markets Authority (CMA) in the UK opposes the transaction due to concerns about the impact on competition in cloud gaming. Microsoft has submitted a “detailed and complex” new proposal to the CMA, which has extended the deadline for a final ruling to August 29. However, the CMA will strive to reach a decision as soon as possible.
In the US, the FTC argued that the deal would harm consumers who play video games on consoles or have subscriptions, as Microsoft may attempt to exclude competitors like Sony Group. Microsoft responded by offering 10-year licenses to competitors.
Judge Corley ruled earlier this week that the deal is legal under antitrust law and denied the FTC’s request to impose a preliminary injunction. This would have allowed the FTC to present the case to an internal judge in August.
Bobby Kotick, the CEO of Activision Blizzard, stated, “Our merger will benefit consumers and workers. It will enable competition rather than allow entrenched market leaders to continue to dominate our rapidly growing industry.”