In a recent development in the ongoing legal battle over Microsoft's acquisition of video game company Activision Blizzard, a federal judge in Northern California has denied the Federal Trade Commission's (FTC) request to halt the $69 billion deal. U.S. District Judge Jacqueline Scott Corley ruled that the FTC did not present sufficient evidence to support its claims that the merger would harm competition in the console, library subscription services, or cloud gaming markets.

The FTC had initially filed a lawsuit to block the sale, arguing that it would give Microsoft an unfair advantage and allow the tech giant to dominate the gaming industry. However, Judge Corley's ruling indicates that the FTC failed to raise serious concerns about the potential anti-competitive effects of the acquisition.

Despite the setback, the trial for the FTC's lawsuit is scheduled to begin in August. However, Judge Corley's decision allows Microsoft to proceed with the acquisition in the meantime. The deadline for completing the deal had been set for July 18, and this ruling brings Microsoft and Activision Blizzard one step closer to finalizing the merger.

If the acquisition is successful, it would become the largest acquisition of a video game company in U.S. history. This decision is considered a significant win for Microsoft and a setback for the FTC's efforts to regulate tech mergers more aggressively.

The ruling also highlights the challenges that the FTC faces in proving anticompetitive behavior in the technology industry. The agency's Chair, Lina Khan, has been advocating for stricter antitrust measures against tech giants, but the FTC has encountered limited success in its endeavors so far.

Notably, the U.K.'s Competition and Markets Authority is also opposing the Activision Blizzard takeover, and Microsoft is appealing their decision as well. Additionally, Canadian regulators are currently investigating the deal and have expressed concerns about its potential impact on competition.

Despite these regulatory hurdles, Microsoft and Activision Blizzard are making progress towards finalizing their merger, pending any further legal action or regulatory decisions. The outcome of this high-profile case will have significant implications for the gaming industry and the ongoing debate surrounding antitrust measures in the technology sector.