The Ninth Circuit US Court of Appeals has delivered a significant ruling regarding the Federal Trade Commission’s (FTC) challenge to Microsoft’s acquisition of Activision Blizzard. In a decision reported by Bloomberg, Judge Daniel P. Collins articulated that the FTC did not adequately demonstrate that Microsoft would restrict the availability of the popular game franchise, Call of Duty, on competing platforms in the future. This assertion was central to the FTC’s argument against the merger.
Legal Standards Affirmed
The appeals court upheld the earlier ruling made by Judge Jacqueline Scott Corley, who had previously blocked the FTC’s attempt to halt the merger in 2023. Judge Collins noted, “The panel held that the district court applied the correct legal standards and did not abuse its discretion, or rely on clearly erroneous findings.” He emphasized that the FTC’s case lacked sufficient evidentiary support to establish a likelihood of success on the merits of its claims.
Furthermore, the court concluded that the FTC had not raised substantial questions regarding whether the merger would significantly reduce competition in the relevant markets. This ruling marks a pivotal moment in the ongoing saga surrounding Microsoft’s intentions to acquire Activision Blizzard, a deal initially announced in 2022.
Since the announcement, the merger has sparked a series of antitrust investigations globally, largely focused on the implications for the Call of Duty franchise and Microsoft’s cloud gaming business. The FTC had expressed concerns that the merger could create a monopoly, but the court’s recent ruling suggests a different perspective.
Ultimately, the deal received approval in 2023, paving the way for Microsoft to integrate Activision Blizzard into its expansive portfolio, a move that could reshape the gaming landscape for years to come.
