Federal Judge Jacqueline Scott Corley has finally made a ruling on Tuesday (July 11), on the legal battle between Microsoft and the United States Federal Trade Commission (FTC) over Microsoft’s proposed acquisition of Activision-Blizzard-King (ABK).

The FTC has been attempting to block the deal, which would see Microsoft acquire the popular game developer responsible for franchises such as Call of Duty, World of Warcraft, and Diablo, among others, for a staggering $69 billion.

The deal has faced opposition from various parties, including Sony and its PlayStation division, which has actively campaigned to block the merger but the European Union has already approved the deal with certain conditions that require Microsoft to support competitors in the cloud gaming market.

In the United Kingdom, the Competition and Markets Authority (CMA), backed by the FTC, blocked the deal in the UK. Despite this setback, Microsoft can still move forward with the merger in other regions.

In the United States, the FTC has been leading the charge against the deal. Microsoft argues that a failed deal would give even more dominance to Sony’s PlayStation in an industry that has seen relatively little change in market dynamics.

Judge Corley delivered a final decision on the matter, denying the FTC’s motion for a preliminary injunction. This ruling essentially allows the deal to proceed as planned, delivering a victory for Microsoft.

In her decision, Judge Corley wrote, “This Court’s responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted—perhaps even terminated—pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED”

In response to the ruling, Microsoft president Brad Smith expressed gratitude to the San Francisco court through a post on his Twitter page and emphasised Microsoft’s commitment to working collaboratively with regulatory bodies.

CEO of Microsoft Gaming and head of the Xbox brand, Phil Spencer, shared his comments on Twitter stating, “We’re grateful to the court for swiftly deciding in our favor. The evidence showed the Activision Blizzard deal is good for the industry and the FTC’s claims about console switching, multi-game subscription services, and cloud don’t reflect the realities of the gaming market.”

He added: “Since we first announced this deal, our commitment to bringing more games to more people on more devices has only grown. We’ve signed multiple agreements to make Activision Blizzard’s games, Xbox first party games and Game Pass all available to more players than they are today. We know that players around the world have been watching this case closely and I’m proud of our efforts to expand player access and choice throughout this journey.”