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FTC v. Microsoft
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FTC v. Microsoft
Federal Trade Commission v. Microsoft Corp. and Activision Blizzard, Inc. was a lawsuit brought against multinational technology corporation Microsoft and video game holding company Activision Blizzard in 2022. The Federal Trade Commission (FTC) sought a temporary injunction against Microsoft in its effort to acquire Activision Blizzard.
In January 2022, Microsoft announced its intention to acquire Activision Blizzard. The deal would make Microsoft the third-largest gaming company by revenue, raising antitrust concerns. The FTC began reviewing the deal later that month and voted to file a legal challenge to stop Microsoft from acquiring the company in December 2022. A temporary restraining order and preliminary injunction were requested before judge Jacqueline Scott Corley in June 2023. Corley rejected the preliminary injunction on July 11, and the FTC appealed the ruling a day later to the Court of Appeals for the Ninth Circuit. The Ninth Circuit denied granting the FTC a preliminary injunction in May 2025, shortly followed by the FTC dropping the case that same month.
The injunction presented a threat to the acquisition and would have halted it if granted in higher courts. FTC v. Microsoft is regarded as Microsoft's largest legal challenge since United States v. Microsoft Corp. (2001).
On January 18, 2022, Microsoft announced its intention to acquire Activision Blizzard for US$68.7 billion, following the company's acquisition of ZeniMax Media for US$7.5 billion in March 2021 and amid a workplace misconduct lawsuit filed against the company by the California Department of Fair Employment and Housing. According to Securities and Exchange Commission (SEC) filings, Xbox head Phil Spencer discussed acquiring Activision Blizzard days after The Wall Street Journal released its report on Activision Blizzard CEO Bobby Kotick's behavior at the company. The deal, which would add many of Activision Blizzard's franchises to Microsoft's subscription service Xbox Game Pass, would make Microsoft the third-largest gaming company by revenue behind Chinese multinational technology company Tencent and Japanese multinational conglomerate Sony. Call of Duty, an Activision Blizzard franchise, would remain on Sony's PlayStation platform for at least three more games, according to Bloomberg News's Jason Schreier; at the time, the games remaining on PlayStation included Call of Duty: Modern Warfare II (2022), Call of Duty: Warzone 2.0 (2022), and Treyarch's forthcoming Call of Duty game in the main series. Following Schreier's report, Microsoft assured customers that it will keep Activision Blizzard's titles on PlayStation beyond Activision Blizzard's existing agreement with PlayStation, despite making ZeniMax Media's Redfall and Starfield (2023) exclusive to Windows and Xbox.
Microsoft's intent to acquire Activision Blizzard raised potential antitrust concerns both within the United States and abroad. The Federal Trade Commission (FTC) said it would review the deal on January 31; although acquisitions are usually reviewed by the Department of Justice, the FTC has begun a push into regulating Big Tech. Senators Elizabeth Warren, Bernie Sanders, Sheldon Whitehouse, and Cory Booker—noted opponents of Big Tech—urged FTC chairwoman Lina Khan to investigate the acquisition. In September 2022, the United Kingdom's Competition and Markets Authority signaled it would investigate Microsoft if the company could not answer its concerns. In a blog post, Spencer cited Microsoft's acquisition of Mojang Studios, the developers of Minecraft (2011), for US$2.5 billion in 2014 as a testament to the company's approach to releasing games on multiple platforms. The European Commission began a provision review later that month and opened an "in-depth investigation" in November.
On October 13, 2023, after receiving approval from most international regulatory bodies, Microsoft closed the deal to acquire Activision Blizzard. Despite the closure the FTC has continued their litigation, and if successful could require concessions or a settlement from Microsoft.
On December 8, 2022, the FTC voted to file a legal challenge to block Microsoft's acquisition of Activision Blizzard. In the lawsuit, the FTC alleges that Microsoft would use its Xbox gaming consoles, Xbox Game Pass, and Xbox Cloud Gaming to suppress competitors, a view point shared by FTC Bureau of Competition director Holly Vedova. Microsoft president and vice chairman Brad Smith asserted that the company has "complete confidence" in its case and welcomes the "opportunity to present it in court". Vice president of communications Frank X. Shaw tweeted a link to a document entitled, "Get The Facts: How Microsoft is Committed to Growing Gaming Communities". Microsoft responded to the challenge with a filing that claimed that the FTC was unconstitutional, salvo that was later removed. The FTC followed their challenge up with a request for a temporary restraining order and preliminary injunction before judge Jacqueline Scott Corley on June 12, 2023, amid concerns that Microsoft may close the deal regardless with approval from the European Commission on July 18. The injunction prevents Microsoft from completing its acquisition of Activision Blizzard until the result of the FTC's legal challenge; an evidentiary hearing for that case was set for August 2.
On July 18, twenty-two Republicans in the House of Representatives sent a letter urging the FTC to drop the case. Two days later, the FTC withdrew its lawsuit. The FTC announced it was resuming the case in September 2023. Arguments before the Ninth Circuit Court began on December 6, 2023, before judges Daniel P. Collins, Danielle J. Forrest, and Jennifer Sung.
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FTC v. Microsoft
Federal Trade Commission v. Microsoft Corp. and Activision Blizzard, Inc. was a lawsuit brought against multinational technology corporation Microsoft and video game holding company Activision Blizzard in 2022. The Federal Trade Commission (FTC) sought a temporary injunction against Microsoft in its effort to acquire Activision Blizzard.
In January 2022, Microsoft announced its intention to acquire Activision Blizzard. The deal would make Microsoft the third-largest gaming company by revenue, raising antitrust concerns. The FTC began reviewing the deal later that month and voted to file a legal challenge to stop Microsoft from acquiring the company in December 2022. A temporary restraining order and preliminary injunction were requested before judge Jacqueline Scott Corley in June 2023. Corley rejected the preliminary injunction on July 11, and the FTC appealed the ruling a day later to the Court of Appeals for the Ninth Circuit. The Ninth Circuit denied granting the FTC a preliminary injunction in May 2025, shortly followed by the FTC dropping the case that same month.
The injunction presented a threat to the acquisition and would have halted it if granted in higher courts. FTC v. Microsoft is regarded as Microsoft's largest legal challenge since United States v. Microsoft Corp. (2001).
On January 18, 2022, Microsoft announced its intention to acquire Activision Blizzard for US$68.7 billion, following the company's acquisition of ZeniMax Media for US$7.5 billion in March 2021 and amid a workplace misconduct lawsuit filed against the company by the California Department of Fair Employment and Housing. According to Securities and Exchange Commission (SEC) filings, Xbox head Phil Spencer discussed acquiring Activision Blizzard days after The Wall Street Journal released its report on Activision Blizzard CEO Bobby Kotick's behavior at the company. The deal, which would add many of Activision Blizzard's franchises to Microsoft's subscription service Xbox Game Pass, would make Microsoft the third-largest gaming company by revenue behind Chinese multinational technology company Tencent and Japanese multinational conglomerate Sony. Call of Duty, an Activision Blizzard franchise, would remain on Sony's PlayStation platform for at least three more games, according to Bloomberg News's Jason Schreier; at the time, the games remaining on PlayStation included Call of Duty: Modern Warfare II (2022), Call of Duty: Warzone 2.0 (2022), and Treyarch's forthcoming Call of Duty game in the main series. Following Schreier's report, Microsoft assured customers that it will keep Activision Blizzard's titles on PlayStation beyond Activision Blizzard's existing agreement with PlayStation, despite making ZeniMax Media's Redfall and Starfield (2023) exclusive to Windows and Xbox.
Microsoft's intent to acquire Activision Blizzard raised potential antitrust concerns both within the United States and abroad. The Federal Trade Commission (FTC) said it would review the deal on January 31; although acquisitions are usually reviewed by the Department of Justice, the FTC has begun a push into regulating Big Tech. Senators Elizabeth Warren, Bernie Sanders, Sheldon Whitehouse, and Cory Booker—noted opponents of Big Tech—urged FTC chairwoman Lina Khan to investigate the acquisition. In September 2022, the United Kingdom's Competition and Markets Authority signaled it would investigate Microsoft if the company could not answer its concerns. In a blog post, Spencer cited Microsoft's acquisition of Mojang Studios, the developers of Minecraft (2011), for US$2.5 billion in 2014 as a testament to the company's approach to releasing games on multiple platforms. The European Commission began a provision review later that month and opened an "in-depth investigation" in November.
On October 13, 2023, after receiving approval from most international regulatory bodies, Microsoft closed the deal to acquire Activision Blizzard. Despite the closure the FTC has continued their litigation, and if successful could require concessions or a settlement from Microsoft.
On December 8, 2022, the FTC voted to file a legal challenge to block Microsoft's acquisition of Activision Blizzard. In the lawsuit, the FTC alleges that Microsoft would use its Xbox gaming consoles, Xbox Game Pass, and Xbox Cloud Gaming to suppress competitors, a view point shared by FTC Bureau of Competition director Holly Vedova. Microsoft president and vice chairman Brad Smith asserted that the company has "complete confidence" in its case and welcomes the "opportunity to present it in court". Vice president of communications Frank X. Shaw tweeted a link to a document entitled, "Get The Facts: How Microsoft is Committed to Growing Gaming Communities". Microsoft responded to the challenge with a filing that claimed that the FTC was unconstitutional, salvo that was later removed. The FTC followed their challenge up with a request for a temporary restraining order and preliminary injunction before judge Jacqueline Scott Corley on June 12, 2023, amid concerns that Microsoft may close the deal regardless with approval from the European Commission on July 18. The injunction prevents Microsoft from completing its acquisition of Activision Blizzard until the result of the FTC's legal challenge; an evidentiary hearing for that case was set for August 2.
On July 18, twenty-two Republicans in the House of Representatives sent a letter urging the FTC to drop the case. Two days later, the FTC withdrew its lawsuit. The FTC announced it was resuming the case in September 2023. Arguments before the Ninth Circuit Court began on December 6, 2023, before judges Daniel P. Collins, Danielle J. Forrest, and Jennifer Sung.
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