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ARTICLE · 13 JUNE 2025

Microsoft Ruling Offers An Antitrust Playbook For Vertical Deals

Baker Botts L.L.P.
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The Federal Trade Commission had sued Microsoft to enjoin its acquisition of Activision Blizzard Inc., owner of the enormously popular...

United StatesAntitrust/Competition Law

The Federal Trade Commission had sued Microsoft to enjoin its acquisition of Activision Blizzard Inc., owner of the enormously popular Call of Duty video game franchise. The government argued the merger would foreclose rivals and diminish competition in highperformance gaming consoles, multigame content library subscription services, and cloud gaming US markets.

In the console market, the FTC argued that Microsoft would make Call of Duty exclusive to its Xbox platform or otherwise disadvantage competitors such as Sony Group Corp.'s PlayStation. In the other markets, the FTC asserted foreclosure and monopoly entrenchment.

A district court denied the FTC's motion for a preliminary injunction, and the US Court of Appeals for the Ninth Circuit affirmed.

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