The massive Microsoft–Activision Blizzard merger is finally past most of its legal hurdles in the US—at least when it comes to antitrust regulation. As of mid-2025, US courts have sided with Microsoft and Activision, upholding previous rulings that the FTC failed to show the deal would significantly lessen competition in gaming or result in anti-competitive harm. The FTC itself formally ended its own challenge in May 2025, after losing separate attempts in district and appellate courts. For most of the gaming industry, that means the $69 billion acquisition is officially in the rearview mirror, leaving Microsoft to run Activision as part of Xbox Game Studios.
How (and Why) Did the US Court Dismiss FTC Objections?
In multiple rulings from 2023 through spring 2025, federal judges and appellate courts found that both the FTC and the Department of Justice couldn’t prove the merger would substantially reduce competition. Most notably, judges determined Microsoft lacked financial incentive to make major franchises (like Call of Duty) exclusive or to degrade them for competing platforms, given potential revenue losses and brand damage. A key point: vertical mergers like this require fact-specific evidence of harm, not just hypotheticals or market share fears.
The US Court of Appeals decisively rejected the FTC’s appeal, saying the agency failed to show probable harm to the industry. By May 2025, a newly reorganized FTC formally dropped its internal administrative challenge, with new leadership signalling a shift away from blockbuster antitrust suits. Microsoft immediately framed this as a win for players and the wider industry.
But Wait—Shareholder Lawsuits Aren’t Over
While the merger itself is secure on legal grounds, a separate Delaware court case is still moving forward against former Activision Blizzard executives. In October 2025, Chancellor Kathaleen McCormick ruled that shareholder allegations against ex-CEO Bobby Kotick and board members—claiming they violated fiduciary duties and shortchanged investors in selling to Microsoft—can proceed. While two claims against Microsoft itself were dismissed, claims against the Activision board (and Kotick in particular) remain active. The Delaware Chancery Court will now hear arguments on whether the compensation terms and process unfairly hurt shareholders when the historic $69B deal closed in 2023.
Key Outcomes and What’s Next
- The Microsoft–Activision deal is now fully settled from a regulatory and antitrust perspective; major legal review is complete.
- Gamers and the industry can expect the two companies to continue integrating—and for Microsoft’s gaming platform to expand access to titles like Call of Duty across devices and services.
- The lone remaining US courtroom drama will play out in Delaware, where former Activision execs now face potential damages if found to have breached their shareholder duties during the sale.
- The FTC, meanwhile, is shifting focus toward new antitrust actions more in line with the current White House’s economic enforcement agenda.
Frequently Asked Questions
Did the US court block the Microsoft–Activision Blizzard deal?
No. After appeals failed, the US courts allowed the deal to stand. Both district and appellate courts found the FTC didn’t prove substantial harm or anti-competitive effects from the merger.
Is the FTC still fighting the acquisition?
No. As of May 2025, the FTC formally dropped its case, citing a lack of ongoing public interest and new enforcement priorities.
Why is there still a court case about the deal?
Shareholders have filed a separate lawsuit against former Activision Blizzard leaders in Delaware court—alleging they failed their duty during the merger process and cost investors money. These claims are unrelated to the FTC’s antitrust case.
Could Microsoft lose Activision Blizzard because of the shareholder lawsuit?
It’s highly unlikely. The deal itself is long since closed. At worst, Activision Blizzard’s former executives (not Microsoft) could owe damages to shareholders, but the merger is secure.
Is there any risk the merger will be undone?
No. With all antitrust and regulatory reviews concluded, the acquisition stands. The only unresolved issue is shareholder compensation in Delaware courts.
Conclusion
After two years of regulatory drama, Microsoft’s Activision Blizzard acquisition is now safe from legal threats in the US, with courts repeatedly finding the FTC didn’t have a strong anti-competitive argument. Shareholders alleging unfair treatment in the sale still have a case pending, but that’s a sideshow compared to the industry-changing regulatory fight. For gamers and the company, this means the Activision merger is here to stay—and the last remaining legal drama comes down to money, not market access or competition law.