Nov 23 (Reuters) – The U.S. Federal Trade Commission (FTC) is likely to file an antitrust lawsuit to block Microsoft Corp’s ( MSFT.O ) $69 billion takeover bid for video game publisher Activision Blizzard Inc ( ATVI.O ), Politico reported. Wednesday, citing people familiar with the matter.
A lawsuit challenging the settlement is not guaranteed, and the FTC’s four commissioners have not yet voted on a complaint or met with the companies’ lawyers, the report said, adding that FTC staff reviewing the agreement is skeptical of the companies’ arguments.
The FTC did not immediately respond to Reuters requests for comment.
“We are committed to continuing to work cooperatively with regulators around the world to allow the transaction to proceed, but we will not hesitate to fight to defend the transaction if necessary,” an Activision Blizzard spokesperson said. Any suggestion that the transaction could lead to anti-competitive effects is “completely absurd”, the spokesman added.
Activision shares fell about 2% in extended trading after closing up 1%.
Microsoft, maker of the Xbox game console, announced in January a deal to buy Activision, the maker of “Call of Duty” and “Candy Crush” games, in the game industry’s biggest deal in history , while global tech giants claimed a virtual future.
[1/4] The Microsoft logo is seen on a smartphone placed over the Activision Blizzard logo shown in this January 18, 2022 illustration. REUTERS/Dado Ruvic/Illustration
Microsoft is betting on the acquisition to help it better compete with video game leaders Tencent ( 0700.HK ) and Sony ( 6758.T ).
The deal also faces scrutiny outside the US The EU opened a full-scale investigation earlier this month. The EU’s competition chief said he 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-scale investigation.
The takeover could damage the industry if Microsoft refused to give rivals access to Activision’s best-selling games, Britain’s antitrust regulator has said.
The deal has drawn criticism from Sony, maker of the Playstation console, citing Microsoft’s control of games like “Call of Duty.”
“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 the same day on both Xbox and PlayStation,” said Brad, president and vice president of Microsoft. Smith has said.
A Microsoft spokesperson said: “We stand ready to address the concerns of regulators, including the FTC, and Sony to ensure the deal closes with confidence. We will continue to pursue Sony and Tencent in the market after the deal closes, and Together, Activision and Xbox will benefit gamers and developers and make the industry more competitive.”
Reporting by Tiyashi Dattaa and Mrinmay Dey in Bangalore; Editing by Sriraj Kalluvila and Leslie Adler
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