Key Highlights:
- A US federal judge has rejected the FTC’s request to temporarily block Microsoft’s acquisition of Activision Blizzard.
- The ruling removes a major US obstacle, but Microsoft still cannot complete the deal globally while the UK’s CMA block remains unresolved.
- Microsoft’s Call of Duty agreements with Nintendo and cloud gaming providers formed part of the evidence considered by the court.
Microsoft has won a major legal battle over its proposed Activision Blizzard acquisition after a US federal judge denied the Federal Trade Commission’s request for a preliminary injunction.
Judge Jacqueline Scott Corley issued the ruling on July 10 following a five-day evidentiary hearing, rejecting the FTC’s attempt to prevent Microsoft and Activision Blizzard from completing the transaction while the regulator pursues its separate administrative challenge.
The decision removes the most immediate obstacle facing the acquisition in the United States, although it does not amount to final regulatory approval and the deal is not yet complete.
Microsoft announced its proposed $68.7 billion purchase of Activision Blizzard in January 2022. The acquisition would bring franchises including Call of Duty, Warcraft, Diablo, Overwatch and Candy Crush under Microsoft ownership and substantially expand the company’s position across console, PC and mobile gaming.
The FTC argues that the transaction could allow Microsoft to disadvantage competing console, subscription and cloud gaming services by controlling Activision Blizzard content.
Judge Corley found that the regulator had not shown that it was likely to succeed in proving the acquisition would substantially lessen competition.
The ruling instead pointed to Microsoft’s agreements intended to make Activision content available beyond the Xbox ecosystem, including its commitment to bring Call of Duty to Nintendo platforms and licensing arrangements with competing cloud gaming services.
Microsoft has also repeatedly said it intends to keep Call of Duty available on PlayStation.
The court battle has therefore centred heavily on whether Microsoft would have the ability and incentive to restrict Activision Blizzard games after taking control of the publisher.
The European Commission reached its own decision in May, approving the acquisition subject to cloud gaming commitments from Microsoft. Its investigation concluded that the transaction raised concerns around cloud streaming but found Microsoft would have little incentive to withhold Activision games from PlayStation.
The situation in the UK remains different.
The Competition and Markets Authority blocked Microsoft’s original acquisition proposal in April over concerns that ownership of Activision Blizzard could strengthen Microsoft’s position in the developing cloud gaming market.
That means the US ruling does not by itself allow Microsoft to complete the acquisition worldwide.
The FTC can also appeal Judge Corley’s decision, leaving another potential legal route open in the United States.
Microsoft and Activision Blizzard are working towards a July 18 contractual deadline for the acquisition, making the remaining regulatory decisions particularly important over the coming days.
Later update: The FTC appealed the ruling, but an appeals court refused its request for an emergency injunction on July 14.
Two days later, Microsoft and Sony signed a binding agreement to keep Call of Duty on PlayStation after the acquisition, directly resolving one of the biggest competitive concerns discussed throughout the regulatory battle.
The UK remained the final major obstacle. Microsoft eventually restructured the acquisition by transferring Activision Blizzard’s cloud streaming rights outside the European Economic Area to Ubisoft, prompting the CMA to approve the revised transaction.
Microsoft completed its acquisition of Activision Blizzard on October 13, 2023.
The FTC continued its administrative challenge after the deal closed, but the regulator ultimately dismissed its complaint in May 2025.
