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😆 This reads like they're choosing to drop it because they want to focus on other things, when the reality is that just the other day they lost their appeal to have it blocked (after their original court loss to have it blocked, this was them also losing the appeal) lol.
https://www.ign.com/articles/ftc-loses-appeal-challenging-microsofts-acquisition-of-activision-blizzard
Lina Khan turned the FTC into an absolute joke, and they're going to have a hard time undoing all the damage she did. They never should have even attempted to block this acquisition. The FTCs entire argument was "yeah sure they'll still be coming last in the market, but they'll have a monopoly somehow" lol. Realistically what they were trying to do was just tie it up in court as long as possible, hoping that the EU would block it. When the EU didn't block it, the FTC went into panic mode because they had no case. They were made to look amateur in court, and they were lambasted by the judges for the waste of time and lack of reasons for the court case.
The FTC hoped that the EU would block the deal, and then the FTC would look like they won as well. Instead they were made to look stupid in court.