Microsoft prepares to go to battle with FTC over Activision deal

American tech giant Microsoft has signaled it plans to challenge the Federal Trade Commission’s (FTC) lawsuit to block its $75 billion deal for Activision Blizzard, and is speculated to argue that it is an underdog in videogame developing.

Satya Nadella led personal- computing firm has been publicising its position for months, saying the acquisition wouldn’t threaten competition in the industry because Microsoft trails rivals such as Sony in videogame consoles and has a limited presence in mobile-game development. The company has also said it expects the industry to get more competitive in the future with the rise of cloud gaming.

Legal experts say Microsoft will likely build its case around those points as well as the fact that it is pursuing what is called a vertical merger, meaning it is buying a company in its supply chain as opposed to a direct competitor. Microsoft has until Thursday to respond to the FTC’s suit, which was filed December 8 in the administrative court.