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Microsoft wins the FTC lawsuit over its Activision deal and can proceed with the merger.
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The judge rejects the FTC's argument that the deal will harm competition in cloud gaming, subscription services, and consoles.
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The judge cites Microsoft's commitments to keep Call of Duty on PlayStation and Nintendo platforms and to share Activision's content with other cloud gaming providers.
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The FTC expresses disappointment and vows to continue its fight against the merger.
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Activision's CEO says the merger will benefit consumers and workers and enable competition.
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Microsoft's president thanks the court for its decision and hopes other jurisdictions will follow suit.
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Microsoft's Xbox head tweets that the deal is good for the industry and the players and that it will expand access and choice.
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Microsoft still faces regulatory challenges in the UK, where the CMA blocked the deal earlier this year.
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Microsoft appeals the CMA's decision and a hearing is scheduled for late July and early August.
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Microsoft says it is considering how to modify the deal to address the CMA's concerns and agrees to pause its appeal in the UK.