Canada says Microsoft’s deal to buy Activision is likely to reduce competition

WASHINGTON, June 29 (Reuters) – Canada’s Justice Department has concluded that Microsoft’s (MSFT.O) deal to buy ‘Call of Duty’ maker Activision Blizzard (ATVI.O) is ‘likely’ to less Gaming will lead to competition in some aspects, according to a court filing on Thursday.

In a letter Wednesday to Microsoft’s U.S. attorneys, the department said it had told attorneys for Microsoft and Activision in Canada that the deal is likely to result in less competition in “game consoles and multigame subscription services (as well as cloud gaming).” would.

On Thursday, the letter was placed on the record of a U.S. federal court case in which the U.S. Federal Trade Commission is asking a judge to temporarily halt the proposed transaction to allow an FTC judge to consider it. The closing arguments in the proceedings are scheduled for later on Thursday.

Microsoft has pushed for a decision in the court case ahead of the July 18 termination date of the deal. A decision could be made as early as next week.

In a statement, Microsoft said it was working with antitrust authorities to address concerns.

“We have received notification from the Canada Competition Bureau that it will continue to monitor our acquisition of Activision Blizzard after the formal hold period preventing the deal from closing,” a Microsoft spokesman said.

Microsoft’s offer to take over the video game manufacturer “Call of Duty” also met with resistance from the British competition authorities. Microsoft’s appeal to the UK Competition Appeal Tribunal is scheduled for July 28.

Reporting by Diane Bartz in Washington, editing by Matthew Lewis

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