Fresh boost for Microsoft’s bid to buy Call of Duty maker

US competition watchdog, the Federal Trade Commission (FTC), has lost its latest bid to temporarily block Microsoft from completing its deal to buy the maker of Call of Duty.

The technology giant’s proposed $69bn (£52.6bn) purchase of Activision Blizzard would be the biggest of its kind in gaming industry history.

The planned deal has faced a series of legal challenges in the US and split regulators around the world.

It is due to completed by 18 July.

Earlier on Thursday, the FTC asked for an order to prevent the takeover from closing until after a separate request to halt the deal had been ruled on by the US Circuit Court of Appeals for the Ninth Circuit.

It came after a federal judge in California ruled on Tuesday for Microsoft, saying the regulator had failed to show the deal would break competition law.

In its latest request to pause the deal, the FTC said judge Jacqueline Scott Corley’s decision “raises serious, substantial issues for the Court of Appeals to resolve”.

“The FTC asks this court to enjoin the merger at issue pending resolution of the FTC’s appeal to the Ninth Circuit Court of Appeals. The motion is denied,” the judge said.

Any outstanding regulatory issues would make it more likely that Microsoft and Activision would have to negotiate an extension to their planned completion date.

Without an agreement either company would be able to walk away from the deal. If the takeover does not go ahead Microsoft would be liable to pay Activision a breakup fee of up to $3bn.

Microsoft did not immediately respond to a BBC request for comment.

Earlier this week, Microsoft President Brad Smith said the company was “disappointed that the FTC is continuing to pursue what has become a demonstrably weak case”.

“We will oppose further efforts to delay the ability to move forward,” Mr Smith added.

To address the FTC’s concerns, Microsoft had agreed to license the hit video game Call of Duty to rivals, including a 10-year contract with Japan’s Nintendo, if the deal was completed.

The takeover was also struggling to get regulatory approval in the UK until earlier this week.

After the ruling in California, the UK’s Competition and Markets Authority (CMA), which had been opposed the transaction, said a reworked deal could meet its requirements, subject to a new investigation.

European Union regulators have approved the deal, saying that Microsoft had addressed their competition concerns.