Canada Says Microsoft Deal To Buy Activision Will Impact Competition

According to a court filing on Thursday, Canada’s Department of Justice has determined that Microsoft’s acquisition of Activision Blizzard, the creator of “Call of Duty,” could potentially result in reduced competition in certain areas of the gaming industry.

In a letter dated Wednesday, the department informed Microsoft’s US lawyers that it had conveyed to the lawyers of Microsoft and Activision in Canada that the deal would probably result in decreased competition in the areas of gaming consoles, multigame subscription services, and cloud gaming.

Read more: Sony Calls UK’s Reversed Stance On Microsoft Activision Deal ‘Surprising & Irrational’

On Thursday, a letter was submitted to a U.S. federal court regarding a proposed transaction. The U.S. Federal Trade Commission is seeking a temporary halt to the transaction in order for an FTC judge to evaluate it. Closing arguments are scheduled for later on Thursday.

Microsoft has requested a decision in the court battle before the July 18 deadline for the deal. A ruling may be made as soon as next week.

Microsoft is collaborating with antitrust enforcers to address concerns, as stated in their official statement. “We received notice from the Canada Competition Bureau that it would continue to monitor our acquisition of Activision Blizzard after the formal waiting period preventing the deal to close expired,” a Microsoft spokesperson said.