By Dee-Ann Durbin, AP Business Writer
The Republican-controlled Federal Trade Commission has abandoned Microsoft’s Biden-era efforts to buy “Call of Duty” video game maker Activision Blizzard.
In an order issued Thursday, the FTC said it determined that “in this case, public interest will most likely be useful in dismissing administrative litigation.”
It was the second time in one day that the FTC had escaped from a lawsuit during the Biden administration. Earlier on Thursday, the FTC said it had dismissed a lawsuit against PepsiCo filed by the Democratic-controlled FTC in January.
Microsoft announced its $69 billion acquisition of Activision in January 2022. It is one of the most expensive technology acquisitions in history and is designed to drive sales of Microsoft’s Xbox Gaming Console, which has fallen behind on the sale of Sony’s PlayStation and Nintendo.
In December 2022, the Federal Trade Commission, led by then-Democrat Chairman Lina Kahn, appealed to temporarily block the acquisition, saying it could curb competitors who wish to access Xbox and its subscription content.
In July 2023, the US District Court in Northern California denied a request to suspend the FTC’s acquisition, but the FTC appealed. Earlier this month, the federal court of appeals also denied the FTC’s request.
In the meantime, Microsoft completed its purchase of Activision in October 2023 after gaining approval for the UK’s competitive watchdog.
Microsoft vice-president and president Brad Smith said in a statement on the X on Thursday that the decision was a victory for video game players and a victory for “normal knowledge in Washington, DC.”
“We are grateful to the FTC for today’s announcement,” Smith said.
Kahn resigned from the FTC when President Donald Trump took office in January, and Trump fired the Democratic commissioner in March, with Rebecca’s massacre and Alvaro Bedoya. The Bedoya and the Massacre sued the Trump administration and said their removal was illegal.
Currently, the FTC is made up of three Republican commissioners, and it is unclear when the two Democrats on the committee will be replaced. The FTC said there was no comment Friday.
In the case of PepsiCo, FTC Chairman Andrew Ferguson said the Biden-era FTC was in a hurry to approve the case just three days before Trump took office. He said Thursday that the incident, which PepsiCo allegedly violated the law by giving Walmart an unfair price advantage, was a “suspecting political stunt.”
However, the FTC is not in the way of Biden’s policy. Earlier this month, rules announced by the FTC in December required advance disclosure of ticket sellers, hotels, vacation rental platforms and more.
Original issue: May 23, 2025, 12:54pm EDT
