Judge Jacqueline Scott Corley of the US District Court denied the FTC's motion for a preliminary injunction against Microsoft's acquisition of Activision.
The injunction would have delayed the completion of the $69 billion deal pending the FTC's ruling on competition concerns in the gaming industry.
The judge's ruling stated that Microsoft made commitments to keep Call of Duty on PlayStation, bring it to Nintendo Switch, and expand Activision's content to cloud gaming services.
The court found that the FTC did not demonstrate a likelihood of prevailing in its claim that the merger would substantially lessen competition.
Microsoft expressed gratitude for the court's decision and reaffirmed its commitment to addressing regulatory concerns.
The ruling removes a major obstacle to the deal's completion, pending a potential appeal by the FTC.
The European Commission approved the acquisition in May, while the UK's Competition and Markets Authority blocked it.
Microsoft's appeal against the UK watchdog's decision is scheduled for July 28.
Microsoft aims to finalize the deal before the current merger agreement expires on July 18, to avoid a $3 billion termination fee if an extension isn't agreed.