The FTC had argued that the merger would allow Microsoft to dominate the Xbox console market and its subscription and cloud gaming services, raising fears of monopolistic practices.

This legal battle has garnered significant attention, with regulators and competitors voicing concerns over potential anti-competitive behavior in the gaming industry.

The ruling may set a precedent for how future large tech mergers and acquisitions are scrutinized by regulatory bodies.

Initially announced in late 2022, the acquisition faced over three years of regulatory scrutiny and challenges.

The outcome reflects the difficulties the FTC has encountered under Chair Lina Khan in contesting major tech mergers, as the agency has struggled to win similar cases.

Microsoft views this ruling as a significant victory, asserting that the acquisition will foster competition and innovation within the gaming sector.

The acquisition has already received approval from the European Commission after Microsoft made adjustments to address concerns from the UK's Competition and Markets Authority.

Following extensive legal proceedings, both U.S. courts and global regulatory bodies have now allowed the acquisition to proceed.

While the immediate legal challenges have been resolved, the FTC's administrative case against the merger continues, leaving the agency with limited options after two court losses.

The FTC's case against Microsoft was spearheaded by Lina Khan, who resigned shortly before the court's ruling, raising questions about the future of the agency's approach to such mergers.

Judge Collins highlighted that evidence showed Microsoft intends to keep 'Call of Duty' available on various platforms, including PlayStation, addressing concerns about exclusivity.

The U.S. Appeals Court has dismissed the Federal Trade Commission's (FTC) appeal to block Microsoft's acquisition of Activision Blizzard, effectively concluding the legal challenges surrounding the deal.