May 23 2025 – The U.S. Federal Trade Commission (FTC) has officially withdrawn its antitrust lawsuit challenging Microsoft’s $68.7 billion acquisition of Activision Blizzard, bringing an end to nearly two years of legal wrangling.
The move comes just three days after a federal appeals court denied the FTC’s request to halt the deal, effectively sealing its fate. According to court documents, the FTC concluded that dismissing the administrative complaint “would best serve the public interest.” This decision formally terminates all legal efforts the agency had pursued since June 2022 to block the merger, including temporary restraining orders and injunctions.
Microsoft’s Vice Chair, Brad Smith, welcomed the development, stating, “Today’s outcome is a win for gamers across the nation and a testament to rational policymaking in Washington. We appreciate the FTC’s final resolution.” The acquisition, initially announced nearly two years prior, secured regulatory clearance from the FTC in July 2023, allowing Microsoft to finalize the deal in October of the same year.
Despite the acquisition’s completion, the FTC had retained the option to pursue retroactive legal action. Originally, the agency could have initiated administrative proceedings in July to potentially force a breakup of the merged entity. However, the withdrawal of the lawsuit indicates a complete abandonment of that authority.
The resolution marks a pivotal moment in the tech industry’s regulatory landscape, as the FTC’s decision not to escalate the matter further underscores a shift in strategy amid evolving antitrust enforcement priorities.
