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I'm pretty sure this pulls the case out of the FTC's in house process and puts it in front of a federal judge that will either confirm or deny the FTC's ability to block this on the merits of the case. This is the worst case scenario for them and they only did it because there was a legit fear Microsoft would close this deal before they even had a say.
It looked like the FTC and CMA were trying to stall this out until both parties dropped the deal but both Microsoft and Activision are hellbent on closing this deal.
I'm not a lawyer but I play video games and I don't see how the FTC using talking points the CMA even abandoned proves legally this merger should be blocked.