FTC abandons Biden-era effort to block Microsoft’s purchase of Activision

A Biden-era effort to stop Microsoft’s purchase of Call of Duty video game developer Activision Blizzard is being abandoned by the Republican-controlled Federal Trade Commission.

The FTC stated in an order on Thursday that “the dismissal of the administrative litigation in this case is best served for the public interest.”

The FTC renounced its legal fight that began under former Democratic president Joe Biden for the second time in a single day. The Democratic-controlled FTC filed a lawsuit against PepsiCo&nbsp earlier on Thursday, and the FTC announced it would dismiss it.

In January 2022, Microsoft made the announcement that Activision would be acquired for $69 billion. One of the priciest tech purchases ever made, it was intended to boost sales of Microsoft’s Xbox gaming console, which has fallen behind Sony’s PlayStation and Nintendo.

The FTC sued in December 2022 to stop the acquisition, contending that it would allow Microsoft to thwart rivals who want access to Xbox and its subscription content.

The FTC’s request to halt the acquisition was denied by the United States District Court in Northern California in July 2023, but the FTC appealed. A federal appeals court also rejected the FTC’s request earlier this month.

In the interim, Microsoft completed its acquisition of Activision in October 2023 following approval from the UK’s competition watchdog, which had also considered halting the merger.

Microsoft’s vice chairman and president, Brad Smith, stated in a statement on X on Thursday that the decision is a victory for video game players and for “common sense in Washington DC.”

Smith thanked the FTC for the announcement made today.

political deeds

When Donald Trump took office in January, Khan resigned from the FTC, along with Democratic Commissioners Rebecca Slaughter and Alvaro Bedoya, in March. The Trump administration is facing legal action against Bedoya and Slaughter, according to them.

Three Republican commissioners are currently in charge of the FTC, and it’s not known when the two Democratic commissioners will step down. The FTC sent a message asking for comment.

Andrew Ferguson, the head of the FTC, claimed that the Biden-era FTC was hurried to grant a case just three days before Trump’s inauguration in the PepsiCo case. He claimed on Thursday that the case, in which PepsiCo claimed that Walmart was getting unfair pricing advantages, was a “dubious political stunt.”

However, some policies from the Biden era haven’t been blocked by the FTC. A provision that the FTC announced in December required ticket sellers, hotels, vacation rental agencies, and other entities to make their fees clearer went into effect earlier this month.