FTC drops 2-year case against Microsoft's $68.7 billion acquisition of Activision Blizzard

Microsoft acquiring Blizzard may be old news, with the deal finalising back in 2023, but the legal battles with the FTC have persevered. Despite being approved after some contention in most countries, including the UK, the acquisition had faced continuous backlash in the United States. It seems the FTC has finally run out of steam in this incredibly long winded fight, and will now opt to drop the case against Microsoft rather than continue to appeal.

As The Verge reports, this comes just days after the FTC lost the preliminary injunction to prevent Microsoft from finalizing its acquisition. Now instead, the FTC has officially filed an order to dismiss its complaint against the tech and gaming giant.

“The Commission has determined that the public interest is best served by dismissing the administrative litigation in this case,“ says the FTC in its filing.

This puts an official end to the battle to stop Microsoft’s $68.7 billion deal from going through, but probably won't stop the I told you so-s. During this fight concerns around Microsoft's business practices in the gaming sector have been continually raised. This includes questioning firings which contradict Microsoft's pledge to keep acquired studios independent. It also touched on price hikes to GamePass after adding high profile titles like Call of Duty, which the FTC went against Microsoft's promises going into the acquisition.

It has been clear for a while the FTC is fighting a losing battle here. Once Microsoft was able to convince the UK's Competition and Market Authority to rule in its favour, it was fairly clear where the chips were going to fall in this scenario. Still, it's good to see a fight against corporations with the good will of consumers in mind.

Unsurprisingly Microsoft is pretty happy with the deal. “Today’s decision is a victory for players across the country and for common sense in Washington, DC,” says Microsoft vice chair and president Brad Smith said in a post to X. “We are grateful to the FTC for today’s announcement.”

From a consumer standpoint it will be interesting to see how Microsoft proceeds now unbothered by the FTCs appeals, especially for customers in the United States. We'll have to wait and see how the new tariffs will likely lead to further price increases for Microsoft products and services, and how these may potentially compound with these or further acquisitions. As well as whether this sets a precedent for future movements by the company or if Microsoft will be content with this win, at least for now.

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