The FTC’s case against the acquisition of Activision, Blizzard, and King by Microsoft just received another significant hit from the United States Court of Appeals for the Ninth Circuit.
Back in 2023, Judge Jacqueline Scott Corley of the United States District Court, Northern District of California, ruled against a preliminary injunction requested by the Federal Trade Commission, in one of the decisions that paved the way for the acquisition to actually happen.
The FTC tried (and, according to the Judge, failed) to prove that it had a significant chance to succeed in blocking the acquisition on the merits of the issue, arguing that Microsoft’s acquisition of Activision, Blizzard, and King damaged competition and harmed customers.
Following Judge Scott Corley’s decision, the regulator presented an appeal to the Ninth Circuit Court of Appeals, hoping to have it overturned.
While the Court of Appeals certainly took its sweet time, today a panel of three Judges (Daniel P. Collins, Danielle J. Forrest, and Jennifer
Sung) dashed said hope by affirming Judge Scott Corley’s decision and rejecting the FTC’s appeal.
According to documents provided by CourtListener, the panel ruled that the District Court “applied the correct legal standards and did not abuse its discretion, or rely on clearly erroneous findings.”
The FTC still has a proceeding against the acquisition afloat in its own Administrative Law court. It remains to be seen whether it’ll opt to continue, given the unfavorable odds and the fact that its conflict against Microsoft on the Activision Blizzard matter was started under the leadership of the former Chair Lina Khan, who resigned in January 2025 following the election of President Donald Trump.
We’ll keep an eye on the situation and keep you updated on whether the proceedings will continue or will be dropped following the lost appeal.
