Microsoft' chance of finishing its $70 billion acquisition of Activision Blizzard seems to  slimmer this week. They are facing a lawsuit.

 

The lawsuit

According to Politico, "The Federal Trade Commission is likely to file an antitrust lawsuit to block Microsoft’s $69 billion takeover of video game giant Activision Blizzard, maker of the hit games Call of Duty and Candy Crush, according to three people with knowledge of the matter.

A lawsuit would be the FTC’s biggest move yet under Chair Lina Khan to rein in the power of the world’s largest technology companies. It would also be a major black mark for Microsoft, which has positioned itself as a white knight of sorts on antitrust issues in the tech sector after going through its own grueling regulatory antitrust battles around the world more than two decades ago."

They also said, "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, two of the people said. However, the FTC staff reviewing the deal are skeptical of the companies’ arguments, those people said.

The investigation remains ongoing, but much of the heavy lifting is completed, including depositions of Microsoft chief executive Satya Nadella and Activision head Bobby Kotick, the people with knowledge of the investigation said. If the agency does move ahead with a case, it could come as soon as next month, said the people, all of whom were granted anonymity to discuss a confidential matter."

Polygon said, "Meanwhile, the war of words between Sony and Microsoft over the deal took an absurd turn Wednesday when the U.K. regulator, the Competition and Markets Authority, released clashing statements the two companies had made to its investigators in October. Sony is pleading with regulators to block the deal, saying Microsoft controlling Activision Blizzard, and particularly the Call of Duty franchise, will kill off competition in the games market."

For more updates on legal industry, click here.