

A federal judge has sided with Microsoft and Activision Blizzard as they fought off the Federal Trade Commission’s attempt to block a deal between the two companies that would create a video gaming giant.
Tuesday’s ruling is a stinging rebuke for the FTC in the biggest test yet of its ability to police competition in fast-moving technology markets, a key priority for the agency Chair Lina Khan, an antitrust hawk installed by President Joe Biden in 2021.
The FTC can appeal to the U.S. Court of Appeals for the Ninth Circuit, and is currently appealing the UK’s Competition and Markets Authority’s decision earlier this year to block the deal. The companies currently have a July 18 contractual deadline to close their deal.
“Our merger will benefit consumers and workers,” said Activision CEO Bobby Kotick. “It will enable competition rather than allow entrenched market leaders to continue to dominate our rapidly growing industry.”
“We are grateful today for this quick and thorough decision and hope other jurisdictions will continue working toward a timely resolution,” said Microsoft President Brad Smith. “As we have demonstrated consistently throughout this process, we are committed to working creatively and collaboratively to address regulatory concerns.”
The FTC did not immediately respond to requests for comment.