FTC drops attempt to block Microsoft's Activision Blizzard acquisition

In the United States, the Federal Trade Commission (FTC) has decided to drop its lawsuit aimed at blocking Microsoft's $69 billion acquisition of Activision Blizzard. This decision comes after a series of legal battles that began under the Biden administration, when the FTC, led by Democratic Chairwoman Lina Khan, initially filed a suit in December 2022 to prevent the merger. The lawsuit argued that the acquisition would give Microsoft an unfair advantage in suppressing competitors who sought access to Xbox and its subscription services. However, following several court rulings that denied requests to halt the acquisition, including decisions from a U.S. District Court and a federal appeals court, the current Republican-controlled FTC ultimately determined that the dismissal of litigation was in the public interest. Microsoft successfully completed the acquisition of Activision Blizzard in October 2023 with approval from Britain's competition regulator, further affirming the merger's viability despite regulatory hurdles. Brad Smith, Microsoft's vice chairman, described the FTC's recent announcement as a positive outcome for players and for sensible governance in Washington D.C. In addition, the FTC also dismissed a separate lawsuit against PepsiCo, indicating a shift in focus for the current administration and signifying the influence of political changes on regulatory actions.