In a big defeat for Federal Trade Commission chair Lina Khan, a federal judge on Tuesday rejected the agency's attempt to derail Microsoft's $69 billion acquisition of Santa Monica, California-based video game maker Activision Blizzard.

In a 53-page decision rejecting the FTC's request for a temporary injunction, U.S. District Judge Jacqueline Scott Corley of the Northern District of California said she was not persuaded the merger would substantially reduce competition or harm consumers.