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Microsoft is ready to take legal action if the US Trade Commission tries to block the deal with Activision


Microsoft is ready to take legal action if the US Trade Commission tries to block the deal with Activision

At least that's what Bloomberg claims, citing sources familiar with the matter. It was revealed last week that Microsoft was ready to offer Sony a 10-year deal to license Call of Duty to cut down on the regulatory process, but now a Bloomberg source claims there have been no negotiations with the FTC to provide remedies or concessions at all.

"Xbox has not been in conversation with the FTC about remedies or concessions aimed at approving the deal, said the person, who asked not to be named while discussing a confidential matter," according to a Bloomberg article. "The FTC is finalizing its investigation and is expected to make a recommendation soon," the source added. The FTC committee members will then vote on whether to file a case.

In the event that the FTC tries to block the case, Microsoft is preparing to challenge the decision in court, said the source, who asked not to be identified, speaking of an internal strategy. Bloomberg Intelligence antitrust analyst Jennifer Rea said she wouldn't be surprised if the FTC filed a lawsuit to block the deal, but noted that the legal battle would be hard for law enforcement to win and Microsoft could gain the upper hand — though the legal battle could drag on until the deal expires. . Microsoft said it expects to close the deal by June 30th.

This is in line with what Activision-Blizzard's executive vice president of corporate affairs and chief communications officer Lulu Cheng Meservy recently tweeted about the deal.

"I'm seeing a lot of speculation about Microsoft's acquisition of Activision Blizzard," the CEO tweeted last month. Any suggestion that the deal could have anti-competitive implications is absurd." "This merger will benefit gamers and the US gaming industry - especially now that we're facing stiffer competition from overseas."

Meservy continued: "We intend to continue to work with regulators around the world to allow the deal to go through, but will not hesitate to fight to protect the deal if need be."