Microsoft bid for Activision likely to be blocked by FTC lawsuit: report

Microsoft’s bid to acquire the video game publisher Activision Blizzard reportedly could face a major roadblock as early as next month.

(FTC) is likely to file an antitrust lawsuit to block the $69 billion takeover, according to Politico, citing people familiar with the matter.

A lawsuit challenging the deal is not guaranteed, and the FTC’s four commissioners have yet to vote out a complaint or meet with lawyers for the companies.

The FTC staff reviewing the deal are skeptical of the companies’ arguments, those people said.

At the center of the FTC’s concerns is whether acquiring Activision would give Microsoft an unfair boost in the video game market.

is number three to the industry-leading Sony Interactive Entertainment and its PlayStation console.

Sony is concerned that if Microsoft made hit games like Call of Duty exclusive to its platforms Sony would be significantly disadvantaged.

“Any suggestion that the transaction could lead to anticomp effects is completely absurd. This merger will benefit gamers and the US gaming industry, especially as we face increasingly stiff competition from abroad,” Activision spokesperson Joe Christinat told Politico.

S fell about 4% in extended trading.

Microsoft announced the deal in January, in the biggest gaming industry deal in history.

Microsoft spokesperson David Cuddy told Politico, the company “is prepared to address the concerns of regulators, including the FTC, and Sony to ensure the deal closes with confidence. We’ll still trail 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.”

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FOX Business has contacted Microsoft and Activision for additional comment.

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