The Trump administration warns FTC officials following a major court defeat involving Microsoft’s acquisition of Activision Blizzard.
The Ninth Circuit Court of Appeals unanimously rejected the FTC’s request to block the $69 billion merger.
Initially, the FTC argued the deal would harm competition in gaming consoles, cloud services, and subscription content.
However, the court disagreed, stating the agency failed to provide credible evidence of future competitive harm.
Moreover, the court noted Microsoft’s promise to keep “Call of Duty” on PlayStation for at least ten years.
Because of that promise, the judges ruled the FTC’s concerns lacked weight and failed to justify a legal block.
Consequently, Microsoft completed the acquisition in October 2023 after the district court refused to grant an injunction.
The acquisition placed Microsoft behind Tencent and Sony, but ahead of Nintendo in global gaming revenue.
As a result, the company gained popular franchises like “World of Warcraft,” “Diablo,” and mobile giant “Candy Crush.”
Meanwhile, the Trump administration warns FTC leadership not to challenge future tech mergers without solid legal foundations.
Following the court’s decision, officials urged the agency to avoid pursuing weak or speculative legal theories.
In contrast, federal prosecutors have been more successful with ongoing monopoly claims against Google.
Despite that, the administration insists that antitrust efforts must rely on facts, not assumptions or political agendas.
Recently, Trump dismissed two Democratic FTC commissioners, Alvaro Bedoya and Rebecca Kelly Slaughter.
In response, they sued to regain their positions, arguing the president cannot remove them without cause.
Although the Supreme Court will soon hear the case, the legal question remains unsettled.
Since returning to office, Trump has promoted technology growth through tariffs and targeted economic incentives.
Consequently, the administration claims over $3 trillion in new corporate investments have entered sectors like AI and semiconductors.
Speaking in April, Trump told CEOs that his policies directly encouraged these long-term commitments.
Overall, the Trump administration warns FTC not to disrupt this momentum with unnecessary legal fights.
For more tech updates, visit DC Brief.
