FTC likely to file lawsuit to block Microsoft bid for Activision

The FTC will likely file a lawsuit to block Microsoft's bid for Activision.

US Federal Trade Commission (FTC) is likely to file an antitrust lawsuit to block it. Microsoft Corporation’s $69 billion takeover bid for the video game publisher. Activation Blizzard Inc, Politico reported, citing people familiar with the matter.

A lawsuit challenging the deal isn’t warranted, and the FTC’s four commissioners have yet to meet with any complaints or attorneys for the companies, the report said, adding that FTC staff reviewing the deal have asked the companies. There is doubt on the arguments of

The FTC did not immediately respond to requests for comment from Reuters.

“We are committed to working cooperatively with regulators around the world to allow the transaction to proceed, but will not hesitate to fight to defend the transaction if necessary,” said an Activision Blizzard spokesperson. ” The spokesman added that any suggestion that the transaction could lead to anti-competitive effects was “absolutely absurd”.

Shares of Activision fell nearly 2% in extended trading after closing 1% higher.

Microsoft, the manufacturer Xbox game console, was announced in January in a deal to buy Activision, “Call of Duty“And”Crush the candyGames, in the biggest gaming industry deal in history as global technology giants stake their claims for a virtual future.

Microsoft is betting on the acquisition to help it better compete with videogame leaders Tencent and others Sony.

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The deal is also facing scrutiny outside the U.S. The European Union launched a full investigation earlier this month. The EU competition enforcement agency said it will decide by March 23, 2023 whether to clear or block the deal.

Britain’s antitrust watchdog said in September it would launch a full investigation.

Britain’s antitrust regulator has said the acquisition could harm the industry if Microsoft denies its rivals access to Activision’s best-selling games.

The deal has been criticized by Sony, the maker of the PlayStation console, citing Microsoft’s control of games like “Call of Duty.”

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“Sony, as the industry leader, says it’s concerned about ‘Call of Duty,’ but we’ve said we’re committed to making the same game available on both Xbox and PlayStation on the same day. ” said Brad Smith, President and Vice Chair of Microsoft.

A Microsoft spokesperson said: “We are prepared to address the concerns of regulators, including the FTC and Sony, to ensure the deal closes in confidence. We will continue to market to Sony and Tencent after the deal closes.” I will trail, and together Activision and Xbox will benefit gamers and developers and make the industry more competitive.”

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