The US Federal Trade Commission filed a notice in court that it intends to appeal a ruling by a federal judge in California allowing Microsoft Corp. to move forward with its $69 billion acquisition of Activision Blizzard Inc.

The FTC will ask the Ninth Circuit Court of Appeals in San Francisco to overturn US District Judge Jacqueline Scott Corley’s finding that the blockbuster game deal won’t thwart competition in the markets for console, subscription and cloud gaming and harm consumers.

Corley on Tuesday denied the agency’s request for a preliminary injunction that would have stopped the deal from closing before a July 18 deadline.

Read More: Microsoft Set for New Shot at Winning UK Over on Activision

(Updates with background.)