FTC likely to file lawsuit to block Microsoft bid for Activision

FTC may file lawsuit to block Microsoft's bid for Activision

The US Federal Trade Commission (FTC) may file a countersuit against the ban Microsoft Corp’s $69 billion takeover bid for video game publisher Activision Blizzard Inc, Politico reported, citing people familiar with the matter.

A lawsuit challenging the practice is not guaranteed, and the FTC’s four commissioners have yet to vote on a complaint or meet with lawyers for the companies, the report said, adding that employees of the FTC reviewing the contract is skeptical of the companies’ arguments.

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

“We are working hard with regulators around the world to allow the transaction to continue, but will not hesitate to fight to protect the transaction if necessary,” the spokesperson said. Activision Blizzard. Speculations that the transaction could lead to anticompetitive effects are “completely absurd,” the spokesman said.

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

Microsoft, maker of the Xbox game console, announced in January the deal to buy Activision, the creator of “Call of the Count“must”Candy Crush“Games, in the biggest gaming industry in history as the world’s technology leaders stake their claim for the virtual future.

Microsoft is betting the acquisition will help it better compete with video game leaders Tencent and Sony.

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The deal is also moving forward outside the US The EU opened a wide-ranging investigation earlier this month. The EU’s competition watchdog said a decision will be made by March 23, 2023, and the deal will be canceled or suspended.

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

The sale could destroy the industry if Microsoft refuses to allow gamers access to Activision’s best-selling games, Britain’s antitrust regulator said.

The move has drawn criticism from Sony, the maker of the Playstation console, which claims Microsoft’s control over games like “Call of Duty.”

“Sony, as the industry leader, says that it is concerned about ‘Call of Duty’, but we have said that we are working hard to release the same game on the same day on the Xbox and PlayStation,” said Microsoft President and Vice Chairman Brad. Smith has said.

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A spokesperson for Microsoft said: “We are ready to address the concerns of regulators, including the FTC, and Sony to ensure that the deal is closed with confidence. We will continue to follow Sony and Tencent in the market after the deal closes, and Activision’s partnership with Xbox will benefit gamers and developers and strengthen the industry.”

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