According to a new report, the Microsoft Activision deal is “likely” to face an anti-trust lawsuit in the United States. That’s according to Politico’s sources with knowledge of the Federal Trade Commission’s (FTC) review of the proposed merger. FTC chair Lina Khan, who was instrumental in shutting down Nvidia’s acquisition of Arm, is a vocal and fierce critic of tech monopolies.
Is Microsoft Activision deal facing another blow?
Politico’s report claims that FTC’s lawyers have yet to meet with Microsoft and Activision representatives but staff members tasked with reviewing the deal aren’t exactly convinced by the companies’ arguments in favor of the merger. Sources say an anti-trust lawsuit is likely, but not guaranteed. The FTC declined to comment on Politico’s report but the website claims that if it pursues a lawsuit, the filing could be made as soon as next month.
If true, this will be yet another roadblock for Microsoft and Activision, who are already facing a challenge in the UK and rest of Europe. So far, the companies have failed to convince regulators across the pond that the deal wouldn’t negatively impact the gaming industry’s landscape and its direct competition with rival Sony, who has argued against the deal.