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FTC Drops Microsoft–Activision Blizzard Case, Ending Challenge to $69 Billion Merger

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The U.S. Federal Trade Commission (FTC) has formally dropped its legal case against Microsoft’s $69 billion acquisition of Activision Blizzard, bringing a definitive end to one of the most high-profile antitrust challenges in the gaming industry.

The FTC announced Thursday that it would not pursue further legal action, citing that continuing the case was “not in the public interest.” The decision comes after the agency lost an appeal on May 7 to block the deal, which officially closed in 2023.

The acquisition—the largest in gaming history—gives Microsoft control over blockbuster franchises such as Call of Duty, World of Warcraft, and Candy Crush, solidifying its dominance in both console and cloud-based gaming.

Shifting Priorities Under New FTC Leadership

FTC Chairman Andrew Ferguson, recently appointed by President Donald Trump, is redirecting the agency’s focus toward matters aligned with the current administration’s priorities. This includes:

  • A probe into advertiser collusion on Elon Musk’s X platform (formerly Twitter), as first reported by Reuters.

  • Ending legacy antitrust efforts, including a price discrimination case against PepsiCo, also dropped Thursday.

This pivot marks a departure from the aggressive antitrust posture of Ferguson’s predecessor, Lina Khan, who launched the Activision challenge over concerns that Microsoft might use the acquisition to suppress competition in the gaming sector—particularly via Xbox exclusivity and its Game Pass subscription service.

Microsoft’s Response

In a statement, Microsoft President Brad Smith praised the FTC’s decision, calling it:

“A victory for players across the country and for common sense in Washington, D.C.”

Microsoft has repeatedly argued that the merger will benefit consumers, pledging to keep popular titles like Call of Duty available across platforms, including Sony’s PlayStation.

Background and Legal Outcome

Though the FTC initially failed to secure a preliminary injunction to halt the deal before closing, it retained the option to pursue a post-closing trial in July 2025 aimed at unwinding the acquisition. That option is now off the table.

The deal had already secured regulatory approval in the EU and U.K., the latter after Microsoft agreed to restructure parts of the acquisition, such as cloud gaming rights.

With the FTC now stepping aside, the merger’s legal battles appear fully resolved, cementing Microsoft’s expanded position in the global gaming industry.

Asus ROG Ally 2 and ‘Project Kennan’ Xbox Handheld Appear in US FCC Listings

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Asus is gearing up to launch the much-anticipated second generation of its handheld gaming console, the ROG Ally 2, with new details about its design and specifications recently leaked online. According to a listing on the US Federal Communications Commission (FCC) website, both the ROG Ally 2 and Asus’s Xbox-branded handheld, codenamed ‘Project Kennan,’ will sport 7-inch displays with a smooth 120Hz refresh rate. The devices are expected to be powered by AMD processors, signaling a focus on delivering robust gaming performance in a portable form factor. Visuals from the listing hint at a fresh design direction, with the consoles resembling traditional gaming controllers to enhance ergonomics and gameplay comfort.

Further insights reveal that Asus plans to release the ROG Ally 2 in two variants, distinguished by color and hardware specs. Certification documents from Indonesia’s SDPPI website confirm the existence of a black model (RC73X1) and a white model (RC73YA). These model numbers also appear on the FCC site, confirming their authenticity. The black version features a dedicated Xbox button, though its exact functionality remains unclear. Some industry reports suggest that Microsoft is working on optimizing Windows for handheld gaming devices to improve the user experience, especially on smaller screens where traditional Windows UI can feel cumbersome.

In terms of hardware, the black variant of the ROG Ally 2 is expected to pack a powerful octa-core AMD Ryzen Z2 Extreme processor, delivering up to 36W of power, coupled with 64GB of high-speed LPDDR5x-8533 RAM. This combination is likely aimed at gamers seeking top-tier performance on the go, enabling smooth gameplay even for demanding titles. On the other hand, the white variant appears to be a more budget-friendly option, featuring a less potent AMD Aeirth Plus processor running at 20W, though details about its RAM capacity remain under wraps.

As Asus prepares to unveil the ROG Ally 2 lineup, the inclusion of a dedicated Xbox-branded handheld device highlights the company’s collaboration with Microsoft and its ambition to carve out a strong presence in the handheld gaming market. With enhanced hardware, high-refresh displays, and design tweaks aimed at improving comfort, these new devices could offer compelling choices for gamers looking for portable yet powerful consoles. Fans eagerly await an official launch date and pricing information in the coming weeks.

Microsoft Wins Appeal Against FTC Challenge to $69 Billion Activision Deal

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Microsoft has secured a major legal victory as the 9th U.S. Circuit Court of Appeals rejected the Federal Trade Commission’s (FTC) bid to revive its antitrust challenge against the tech giant’s $69 billion acquisition of Activision Blizzard, maker of the Call of Duty franchise.

Key Points:

  • Unanimous Ruling: A three-judge panel upheld a lower court decision that denied the FTC’s request for a preliminary injunction. The court found that the FTC failed to demonstrate that the deal would likely harm competition.

  • Deal Closed in 2023: Microsoft finalized the largest-ever gaming acquisition after gaining approvals from regulators including UK authorities, despite scrutiny in multiple global jurisdictions.

  • FTC’s Position: The FTC argued the acquisition would undermine competition in console gaming, subscription services, and cloud gaming, but both the district court and appeals court found these claims lacked sufficient evidence.

  • Impact on FTC Strategy: The ruling is a blow to the FTC’s broader push under President Joe Biden’s administration to ramp up antitrust enforcement in Big Tech. The FTC’s internal administrative proceedings, paused since 2023, remain uncertain.

  • Microsoft’s Next Steps: While Microsoft has not yet commented, the ruling removes a significant legal obstacle and further solidifies its control over Activision’s gaming titles and intellectual property.

Judge Jacqueline Scott Corley had already ruled in 2023 that the acquisition would not “substantially lessen competition,” a standard the appellate court agreed had been correctly applied.