Federal judge allows Microsoft's $69 billion takeover of Activision Blizzard

A federal judge has ruled in favor of Microsoft's $69 billion takeover of video game company Activision Blizzard, rejecting regulators' claims that it would harm competition. U.S. District Judge Jacqueline Scott Corley stated that although the merger deserved scrutiny as a potentially historic event in the tech industry, the regulators failed to demonstrate significant harm. The Federal Trade Commission (FTC), responsible for enforcing antitrust laws, was unable to raise serious concerns about competition in video game consoles, monthly game subscriptions, or cloud-based gaming.

During a five-day court hearing, Microsoft CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick assured that the popular game Call of Duty would remain available on rival platforms, including Sony's PlayStation. Kotick emphasized that the merger would benefit consumers and promote competition in the rapidly growing industry.

The FTC had sought an injunction to temporarily halt the deal until an August trial before the agency's in-house judge. However, Microsoft and Activision Blizzard argued that such a delay would force them to abandon the agreement. The FTC has not revealed whether it will appeal the ruling.

The decision presents a setback for the FTC's increased scrutiny of the technology sector under Chairperson Lina Khan. It also highlights the challenges the FTC has faced in preventing other major tech mergers. The deal still faces opposition from the U.K.'s Competition and Markets Authority, while Canadian regulators have expressed concerns about potential competition limitations. Advocates for stronger antitrust enforcement are urging the FTC to seek an emergency stay of the ruling.