FTC called out by US Congress for siding with Sony

FTC Chair Lina Khan responded by saying that the regulatory body finds feedback from the market players, big companies included, highly beneficial. She adds that the FTC's attempt to block the merger is based on its independent assessment and is "based on the law and the facts."

The FTC lawsuit is Microsoft's biggest hurdle in its bid to acquire Call of Duty developer and publisher Activision Blizzard. The acquisition also includes King, one of the leading mobile game developers and makers of the video game Candy Crush.

Microsoft has a big week ahead of it as the UK CMA and EU Commission are set to finalize their rulings on the deal. The UK CMA has softened its stance on the merger in recent weeks, even suggesting that there is no significant reduction in competition should Microsoft withhold Call of Duty from its rival console.

Reports suggest that Microsoft will likely offer concessions to the EU Commission to get the ball rolling. According to reports, the EU may approve the deal as Microsoft has offered licensing deals with various consoles and platforms for the Call of Duty franchise. The tech giant has now shaken hands on deals to bring Call of Duty to Nintendo, Nvidia, Boosteroid, and EE.

Microsoft has also extended several offers to Sony for a ten-year licensing deal for the Call of Duty series. The licensing deal between Activision and Sony is set to expire next year.

Microsoft has until the middle of the year to complete the deal. If, for any reason, the deal is not completed by July 2023, Microsoft will be paying a hefty fine and will need to renegotiate the terms of the deal.