The Republican-led Federal Trade Commission (FTC) is ending a Biden-era effort to stop Microsoft from buying the video game company Activision Blizzard, known for “Call of Duty.”
On Thursday, the FTC said it decided “the public interest is best served by dismissing the administrative litigation in this case.”
This was the second time in one day the FTC dropped a lawsuit started under Biden. Earlier that day, the FTC also dropped a lawsuit against PepsiCo, filed by the Democratic-led FTC in January.
Microsoft announced its \$69 billion deal to buy Activision in January 2022. The purchase aimed to help Microsoft’s Xbox compete with Sony’s PlayStation and Nintendo.
In December 2022, the FTC, led by Democrat Lina Khan, tried to block the deal, saying it could let Microsoft block competitors from Xbox and its subscription services.
In July 2023, a U.S. court refused the FTC’s request to pause the deal, but the FTC appealed. Earlier this month, an appeals court also said no to the FTC.
Microsoft completed the purchase in October 2023 after Britain’s competition watchdog approved it, despite concerns about the deal.
The logo for Microsoft, and a scene from Activision “Call of Duty – Modern Warfare,” are shown in this photoBrad Smith, Microsoft’s vice chairman and president, called the FTC’s decision a win for gamers and “common sense in Washington D.C.”
“We are grateful to the FTC for today’s announcement,” Smith said.
Khan left the FTC when President Trump took office in January. Trump later fired Democratic commissioners Rebecca Slaughter and Alvaro Bedoya, who then sued, saying their removal was illegal.
Now, the FTC has three Republican commissioners, and it is unclear when the two Democrats will be replaced. The FTC declined to comment on Friday.
About the PepsiCo case, FTC Chairman Andrew Ferguson said the previous FTC rushed the case just before Trump’s inauguration. He called the lawsuit, which claimed PepsiCo gave Walmart unfair price advantages, a “dubious political stunt.”
Still, the FTC has kept some Biden-era rules. Earlier this month, a rule from December requiring ticket sellers, hotels, and rental sites to show fees clearly before purchase took effect.
