On April 15th, 2021, the U.S. Court of Appeals for the District of Columbia Circuit upheld a Federal Trade Commission (FTC) decision that Microsoft had violated antitrust laws by engaging in anti-competitive practices in its dealings with video game publisher Activision. The FTC had originally ruled in 2019 that Microsoft had abused its monopoly power in the gaming industry by forcing Activision to enter into exclusive contracts that prevented it from offering its games on competing platforms.

The court’s decision was a major victory for the FTC, as it reaffirmed the agency’s authority to enforce antitrust laws and protect consumers from anti-competitive practices. The ruling also serves as a warning to other companies that may be engaging in similar activities.

The case began in 2018 when the FTC filed a complaint against Microsoft alleging that it had used its monopoly power to force Activision to sign exclusive contracts that prevented it from offering its games on competing platforms. The FTC argued that this practice was anti-competitive and limited consumer choice. Microsoft argued that the contracts were necessary to ensure that its games were available on its own platforms and that it was not engaging in anti-competitive behavior.

In 2019, the FTC ruled in favor of the agency and ordered Microsoft to stop engaging in anti-competitive practices. Microsoft appealed the decision, arguing that the FTC had overstepped its authority and that its contracts with Activision were not anti-competitive.

The appeals court disagreed, ruling that the FTC had acted within its authority and that Microsoft’s contracts with Activision were indeed anti-competitive. The court noted that Microsoft’s actions had resulted in fewer choices for consumers and had limited competition in the gaming industry.

The appeals court’s decision is a major victory for the FTC and a reminder to other companies that anti-competitive practices will not be tolerated. It also serves as a warning to companies that may be engaging in similar activities, as they could face similar legal action from the FTC.