What Microsoft's Activision Blizzard Deal Really Means

13.10.2023 - 15:13 / screenrant.com / Phil Spencer / Sarah Cardell

The decision in Microsoft's legal case against the US Federal Trade Commission (FTC) is a historic one, but for those who don't have a law degree, it can be hard to understand. The case surrounds the Microsoft Corporation's attempt to purchase the game developing and publishing powerhouse Activision Blizzard, Inc., an enormous conglomerate that counts,, and among its flagship properties. Microsoft first announced its plans to buy Activision Blizzard in January 2022, and the FTC's review began shortly thereafter. The legal battle began in earnest by June 2023, when the FTC filed its first documentation in the United States District Court for the Northern District of California.

was decided in Microsoft's favor on July 11, 2023. As with most FTC court cases, much of the surrounding information is publicly available. But since this case deals with several of the most prominent entities in the video game industry, it's attracted an extraordinary amount of widespread attention, especially when it revealed rumors like the predicted release date of the PlayStation 6. However, if those following the case don't have a law degree, terms like «preliminary injunction» and «subpoena ad testificandum» are liable to make their head spin. In the plainest terms, the following describes why this case exists, how the ruling was reached, and what it may mean for the future of the video game industry.

The court initially ruled in favor of Microsoft, which meant that the US government had officially approved Microsoft's attempt to purchase Activision Blizzard. But it wasn't over completely. The FTC had the opportunity to appeal the decision until July 14, which would give it the chance to point out flaws in the trial in order to potentially overturn the result. However, on July 14, 2023, a U.S. appeals court rejected the FTC's request to pause Microsoft's purchase of Activision Blizzard.

With the FTC roadblock seemingly out of the way, there was still another big problem, as Microsoft still had a similar case from the United Kingdom's Competition and Markets Authority (CMA). As one of the first regulatory bodies to raise concerns about the acquisition, concessions had to be made to complete the deal. Through a long process of denials and appeals, the case finally saw a resolution with the UK regulator on October 13, 2023, when the CMA officially approved the deal due to a restructuring agreement that ensures that Microsoft transfers cloud gaming rights for current and new Activision Blizzard titles to Ubisoft.

Sarah Cardell, CEO of the CMA stated, “” (via ). With this last roadblock cleared, Microsoft-Activision officially announced the completion of the acquisition. Microsoft Gaming's CEO, Phil Spencer said, ""

The