In July 2021, The Wall Street Journal alleged that Activision Blizzard CEO Bobby Kotick engaged in workplace misconduct.

The FTC began reviewing the deal later that month and voted to file a legal challenge to stop Microsoft from acquiring the company in December 2022.

[5] Microsoft's intent to acquire Activision Blizzard raised potential antitrust concerns both within the United States and abroad.

[6] Senators Elizabeth Warren, Bernie Sanders, Sheldon Whitehouse, and Cory Booker—noted opponents of Big Tech—urged FTC chairwoman Lina Khan to investigate the acquisition.

In a blog post, Spencer cited Microsoft's acquisition of Mojang Studios, the developers of Minecraft (2011), for US$2.5 billion in 2014 as a testament to the company's approach to releasing games on multiple platforms.

Microsoft president and vice chairman Brad Smith asserted that the company has "complete confidence" in its case and welcomes the "opportunity to present it in court".

Vice president of communications Frank X. Shaw tweeted a link to a document entitled, "Get The Facts: How Microsoft is Committed to Growing Gaming Communities".

[13] The FTC followed their challenge up with a request for a temporary restraining order and preliminary injunction before judge Jacqueline Scott Corley on June 12, 2023, amid concerns that Microsoft may close the deal regardless with approval from the European Commission on July 18.

The injunction prevents Microsoft from completing its acquisition of Activision Blizzard until the result of the FTC's legal challenge; an evidentiary hearing for that case was set for August 2.

Arguments before the Ninth Circuit Court began on December 6, 2023, before judges Daniel P. Collins, Danielle J. Forrest, and Jennifer Sung.

[18] In his deposition, Ryan stated that Sony would not share details about its forthcoming video game console with a Microsoft-owned Activision Blizzard.

On the first day, the FTC questioned Xbox's ability to port the Call of Duty franchise onto the Nintendo Switch, arguing that technical limitations would make the series' games separate.

Hines revealed that an upcoming Indiana Jones game from MachineGames would be exclusive to Windows and Xbox, altering a contract with Disney.

[29] On July 11, 2023, Corley ruled against FTC and denied the motion for a preliminary injunction, arguing that Microsoft had made a commitment to keeping Call of Duty on PlayStation.

[37] In The Hill, conservative journalist Stephen Kent criticized Federal Trade Commission chair Lina Khan and praised Microsoft.

[38] The Washington Post's editorial board said that the FTC should allow the deal to proceed, but include a consent decree that permits the agency to make any Activision Blizzard titles multiplatform under their discretion.