FTC voted in December to block deal, which it says could violate antitrust laws by suppressing Microsoft Xbox competitors.
At the center of the dispute is Microsoft's rivalry with PlayStation maker Sony to secure popular Activision Blizzard franchises like the military shooter game Call of Duty.
The dispute could be a difficult test case for Biden-appointed FTC Chair Lina Khan, who has sought to strengthen enforcement of antitrust rules. The FTC voted 3-1 earlier in December to issue the complaint seeking to block the deal, with Khan and the two other Democratic commissioners voting in favor and the sole Republican voting against.
The FTC's suit describes top-selling franchises like Call of Duty as important because they develop a base of loyal users attached to their preferred console or streaming service. "Even with confidence in our case, we remain committed to creative solutions with regulators that will protect competition, consumers, and workers in the tech sector," said Microsoft's president, Brad Smith, in a statement Thursday."As we've learned from our lawsuits in the past, the door never closes on the opportunity to find an agreement that can benefit everyone.
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