Microsoft Wins FTC Court Case, Activision Blizzard Deal Can Proceed

The FTC loses its high-profile case against Microsoft, allowing the company to complete its acquisition in the US.

It's a surprise win for Microsoft today as it wins its lawsuit with the FTC. This allows the company to complete its merger with Activision Blizzard in the US. It's also a huge blow for Sony, who went all-in on providing evidence to try and get the deal scrapped altogether.

The trial, which had produced numerous headlines during Xbox and PlayStation's constant back and forths, came after the FTC attempted to prevent the deal from being approved in the US. This came around the time it was reported that all parties were ready to close the deal. Now, with the lawsuit out of the way, we can expect to hear news about its approval in the US soon.

Sony is guaranteed to disagree with the result. The PlayStation studio had provided testimony hoping to stop the merger from going ahead. This included PlayStation boss Jim Ryan arguing that Game Pass is bad for the industry, secretly but "unanimously" hated by game developers.

Even outside of the fighting between Sony and Microsoft, the trial was a mess. Infamously, redactions in some of the documents weren't done well at all, to the point where it was accidentally revealed that PlayStation games cost upwards of $200 million to develop.

Microsoft will, of course, be incredibly pleased with the news - even if its own testimony produced some slightly embarrassing headlines. For example, the company argued it had lost the console wars, but also described them as a "social construct" anyway. Microsoft CEO Satya Nadella even said he wants to "get rid" of console exclusives, saying he has "no love" for the practice. Still, we're unlikely to see Xbox stop doing them anytime soon.

Since the news broke, The Verge has shared the ruling from the judge presiding over the case.

"Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox," reads the ruling. "The record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED."

The judge also commented that the FTC has failed to prove that the deal will "substantially lessen competition" within the industry, and therefore cannot proceed with its legal action against Microsoft. This clears one of the major legal hurdles standing in the industry giant's way, making news of the deal's approval in the US very likely.

Following this, Microsoft has issued a statement, saying that its "focus now turns back to the UK". While making it clear that it still disagrees with the CMA's decision, it says it is "considering how the transaction might be modified" to address its concerns.

The Communications Workers of America (CWA) union, which represents many game workers in the US, also "applauds" the decision. This comes after the CWA and Microsoft reached an agreement to allow its workers to hold a "free and fair process" to unionise. The deal would extend to Activision Blizzard workers if the merger goes ahead.