Judge rules in favor of Microsoft’s Activision Blizzard merger

In a significant victory for Microsoft and Activision Blizzard, a federal judge has ruled that the Federal Trade Commission (FTC) cannot block the proposed $68.7 billion merger.

The FTC had filed a lawsuit in December, expressing concerns that the merger would lessen competition and give Microsoft undue control over the gaming industry. However, Judge Jacqueline Scott Corley ruled that the FTC had not provided enough evidence to support its claims of anti-competitive behavior.

The judge stated that the FTC had failed to demonstrate that the merged company would restrict access to Activision Blizzard's popular titles, such as Call of Duty, on platforms other than Microsoft's Xbox. The ruling also rejected the claim that Microsoft's ownership of Activision Blizzard would have a significant impact on the video game library subscription and cloud gaming markets.

This ruling is a positive development for Microsoft, although the merger is still subject to other legal challenges. In the United Kingdom, the Competition and Markets Authority (CMA) had attempted to block the deal but has now agreed to pause the litigation in light of the FTC ruling.