The Federal Trade Commission (FTC) has lost its appeal of a ruling in its case against Microsoft’s $68.7 billion acquisition of Activision Blizzard.

In 2023, the FTC requested a preliminary injunction to prevent the companies from finalizing the deal while its legal challenge to the acquisition from 2022 was in progress.

“With control of Activision’s content, Microsoft would have the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition – including competition on product quality, price, and innovation,” the FTC said in its complaint.

A district court judge denied the FTC’s request, and a day after that ruling, the FTC appealed. The deal was completed in October 2023, nearly two years after the acquisition was first announced.

Today, an appeals court panel affirmed that denial, as reported by Reuters. In its opinion, the panel says that “given the FTC’s failure to make an adequate showing as to its likelihood of success on the merits as to any of its theories, the district court properly denied the FTC’s motion for a preliminary injunction on that basis.”

The deal is still “the subject of an administrative proceeding that remains pending before the FTC,” according to today’s opinion.

FTC spokesperson Vicky Graham and Microsoft spokesperson Alex Haurek declined to comment.