From Yahoo Finance: 2025-05-08 09:42:00

President Trump’s antitrust enforcers received a warning after a court blocked Microsoft’s $69 billion acquisition of Activision Blizzard. The ruling emphasized the need for evidence of real harm to competition. The decision challenges the broad antitrust scrutiny of Big Tech by both Trump and Biden administrations.

Despite the FTC’s challenge, Microsoft closed the deal to acquire Activision in 2023, making it the second-largest home console maker by revenue. The acquisition included popular franchises like “Call of Duty” and “Candy Crush,” boosting Microsoft’s position in the gaming market.

The FTC’s lawsuit alleged that Microsoft’s control of Activision’s content would harm competition in gaming markets. However, Microsoft agreed to allow “Call of Duty” on Sony’s Playstation for 10 years under pressure from regulators. The court ruling may impact the FTC’s pursuit of a breakup.

The FTC’s challenge continues in its in-house court, despite the appellate ruling denying an injunction to pause the merger. The agency claimed that the tie-up would negatively impact game consoles, subscription content, and cloud gaming. Microsoft’s ability to control content quality, price, and innovation was also a concern.

Read more: Trump’s FTC antitrust cops just got a loud warning about blocking tech tie-ups