According to a Thursday court filing, Canada’s Department of Justice believes Microsoft’s (MSFT.O) acquisition of “Call of Duty” creator Activision Blizzard (ATVI.O) “is likely to” reduce gaming competition.
On Wednesday, the government wrote to Microsoft’s U.S. lawyers that it had informed Microsoft and Activision’s Canadian lawyers that the merger would likely reduce competition in “gaming consoles and multigame subscription services (as well as cloud gaming).”
The letter was placed on Thursday’s docket of a U.S. federal court lawsuit. The Federal Trade Commission asks a judge to temporarily halt the proposed transaction so an FTC judge can review it. Thursday’s closing arguments are scheduled.
Microsoft wants a court ruling before the July 18 pact termination. Next week may see a ruling.
Microsoft claimed it was addressing issues with antitrust enforcers.
“The Canada Competition Bureau informed us that it would continue to monitor our acquisition of Activision Blizzard after the formal waiting period expired,” a Microsoft representative stated.
British competition regulators oppose Microsoft’s “Call of Duty” acquisition. Microsoft’s appeal to Britain’s Competition Appeal Tribunal is on July 28.