CRA Competition supported Microsoft and Activision Blizzard during the US legal proceedings related to their $69 billion acquisition.
CRA expert Dr. Elizabeth M. Bailey provided expert testimony and economic analysis on behalf of Microsoft and Activision Blizzard in an evidentiary hearing on a motion for a preliminary injunction filed on June 12, 2023 by the FTC in the US District Court for the Northern District of California, San Francisco Division. Dr. Bailey was the only expert witness to present live direct examination testimony during the hearing. CRA’s Professor Fiona Scott Morton also provided advisory support to the parties during the FTC’s investigation.
On July 10, 2023, after a five-day bench trial, US District Court Judge Jacqueline Scott Corley denied the FTC’s motion for a preliminary injunction, ruling in favor of Microsoft and Activision Blizzard. Dr. Bailey’s testimony was cited by Judge Corley numerous times during closing arguments and in her written opinion.
In Federal Trade Commission v. Microsoft Corp. and Activision Blizzard, Inc., the FTC sought a preliminary injunction to enjoin Microsoft’s $69 billion acquisition of Activision Blizzard pending the administrative action the FTC brought against the transaction in December 2022. The FTC argued that the proposed transaction raised vertical foreclosure concerns, alleging that Microsoft would have an increased incentive to withhold or degrade Activision’s video game content including Call of Duty – from Microsoft’s Xbox rivals, and would substantially lessen competition across multiple relevant product markets including high performance video game consoles, video game subscription services, and cloud gaming services sold in the United States in violation of Section 7 of the Clayton Act.
On July 14, 2023, the Ninth Circuit upheld Judge Corley’s decision, denying the FTC’s emergency motion for an injunction pending appeal.
In May 2025, following an appeals court decision to uphold the denial of its preliminary injunction request, the FTC formally dismissed its administrative complaint challenging Microsoft’s acquisition of Activision Blizzard. This action concluded the Commission’s legal opposition, marking the transaction as the largest-ever acquisition in the video gaming market.
Dr. Bailey was supported by a large CRA team including, Dr. Andrea Asoni, Dr. Jeffrey Prisbrey, Professor Fiona Scott Morton, Dr. Spencer Graf, Dr. Paul Labys, Dr. Javier Brugués, Dr. Alexandra Charbi, and Grace Luo.
CRA’s team collaborated closely with legal counsel representing Microsoft at Wilkinson Stekloff – Beth Wilkinson, Rakesh Kilaru, Kieran Gostin, and Sarah Neuman; and at Weil, Gotshal & Manges – Michael Moiseyev and Megan Granger – as well as attorneys representing Activision Blizzard at Skadden, Arps, Slate, Meagher & Flom LLP–Steve Sunshine, Julia York, Michael Sheerin, and Evan Kreiner.
