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Microsoft-Activision US appeal ruling cements hurdle for vertical merger challenges

By Flavia Fortes ( May 14, 2025, 21:39 GMT | Comment) -- A federal appeals court ruling last week in favor of Microsoft’s acquisition of Activision underscores the obstacles to contesting vertical mergers in US courts. The US Court of Appeals for the Ninth Circuit decision affirming the denial of a preliminary injunction request by the US Federal Trade Commission clarified the “serious questions” legal standard for the agency’s requested relief — writing that a preliminary injunction is "an extraordinary and drastic remedy" — and cemented court precedent favoring vertical transactions. A federal appeals court ruling last week in favor of Microsoft’s acquisition of Activision underscores the obstacles to contesting vertical mergers in US courts....

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