Microsoft has successfully completed its $75 billion acquisition of video game giant Activision Blizzard, despite ongoing opposition from the Federal Trade Commission (FTC). The landmark deal, the largest in the history of the video game industry, was approved by the UK's Competition and Markets Authority (CMA), which dropped its opposition earlier in the day. As a condition of the approval, Microsoft agreed to sell streaming rights to rival Ubisoft. However, the FTC is continuing its fight to prevent the merger and has brought an administrative case before its own in-house judge. While the FTC's challenge is considered a long shot, if successful, it could force Microsoft and Activision to undo the deal.

The approval from the CMA marks a significant victory for Microsoft and Activision, following a lengthy and contentious legal process that lasted nearly two years and nearly derailed the merger. Microsoft was even forced to extend its merger agreement with Activision by three months over the summer. Xbox chief Phil Spencer expressed his excitement about the acquisition, stating, "Today is a good day to play. We officially welcome Activision Blizzard King to Team Xbox. Together, we'll create stories and experiences that bring players together, in a culture empowering everyone to do their best work and celebrate diverse perspectives." Microsoft plans to add Activision-Blizzard video game titles to its Xbox Game Pass subscription service.

Brad Smith, Microsoft's vice chair and president, expressed his gratitude for the CMA's thorough review and decision, stating that the acquisition will benefit players and the gaming industry worldwide. Microsoft's stock saw a slight increase of 0.2% following the news. The CMA noted that the concessions made by Microsoft to secure approval will ensure competitive prices and services for UK cloud gaming customers, preventing the tech giant from monopolizing the market. The CMA emphasized that it is the only competition agency globally to have achieved this outcome.

The FTC's opposition to the merger stems from its belief that the deal poses a threat to competition. In July, the FTC suffered a setback after its argument that the merger would harm competition in the video game sector was rejected by US Judge Jacquelin Scott Corley. The FTC has appealed the ruling and stated that its internal evidentiary hearing will commence 21 days after the issuance of the district court's decision. Microsoft, on the other hand, plans to rely on Activision's library of content to strengthen its Xbox service and compete with rivals such as Sony and Nintendo.

The final approval from British regulators is a significant milestone for Microsoft's $69 billion acquisition of Activision Blizzard. The Competition and Markets Authority (CMA) gave its consent after Microsoft agreed to license a part of Activision's business associated with cloud gaming to a rival company. This approval comes after Microsoft won a court case against the Federal Trade Commission and convinced British authorities to reverse their initial decision to block the acquisition. The completion of this deal will combine Microsoft's Xbox business with the world's largest game publisher, Activision, known for titles such as "Call of Duty," "Candy Crush," and "World of Warcraft."

Microsoft's ability to overcome regulatory concerns highlights the limitations of government efforts to control the power of tech giants. Microsoft made concessions, ensuring that Activision titles will remain available on rival consoles and transferring cloud streaming licensing rights to Ubisoft. This move prevents Microsoft from using Activision titles to gain an advantage in the growing market of cloud gaming. The arrangement will last for 15 years and apply to all markets except the European Union, which approved the deal without the cloud gaming concession.