US judge rules Microsoft can close its $75 bn Activision buy

The companies can complete the deal before an FTC hearing that is scheduled for August

- Sarah E. Needleman

Microsoft can close its $75 billion acquisition of Activision Blizzard, a federal judge ruled, delivering a major setback to the Biden administration's attempt to rein in big mergers.

The deal would combine Microsoft's Xbox video-gaming business with the publisher of popular franchises such as Call of Duty, World of Warcraft and Candy Crush. The ruling means there is no current U.S. obstacle to the two companies merging; the companies are still seeking U.K. approval.

The Federal Trade Commission had sought an injunction to prevent the two companies from completing their megadeal before the agency began a separate process to challenge it in August.

The FTC can appeal the ruling, although that is uncommon for the agency. It also can continue with its challenge to block the deal.

In its suit, the FTC alleges that the deal would give Microsoft the ability to control how consumers beyond users of its own Xbox consoles and subscription services access Activision's games. Microsoft has argued the deal is good for gamers and for competition.

Courts issue injunctions when a judge believes the plaintiff is likely to prevail in the case. After losing a similar injunction request on a separate acquisition earlier this year, the FTC abandoned its effort to stop a Meta Platforms deal.