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Microsoft, US regulators head to court over $69B deal

Microsoft heads to a San Francisco courtroom on Thursday to advocate for the approval its $69 billion takeover of Activision Blizzard.

Microsoft will be facing U.S. regulators on Thursday in an attempt to win clearance to complete a $69 billion takeover of video game maker Activision Blizzard.

A lot is at stake as the deal will reshape a pastime that's bigger than the movie and music industries combined.

Microsoft will go up against the U.S. Federal Trade Commission's attempt to block a deal that it contends will stifle competition and innovation.

Microsoft CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick are expected to testify at some point during five days of hearings in San Francisco in support of a deal that was announced 17 months ago.

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FTC lawyers will call upon experts to show why Microsoft will gain an unfair advantage if it is allowed to blend its Xbox franchise with the Activision acquisition.

Expected to testify will be a top executive from rival Sony, the maker of the industry-leading PlayStation video game console.

The Activision acquisition would give Microsoft ownership of popular video game titles such as Call of Duty, World of Warcraft and Candy Crush.

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Once all evidence is presented, a judge will decide whether to grant the FTC's request for a court order that would keep the deal in a holding pattern until an administrative trial scheduled to begin August 2.

A decision isn't expected until after the Fourth of July holiday.

If the judge declines to issue an injunction, Microsoft could move to close the deal ahead of a July 18 deadline and avert a $3 billion breakup fee.

MICROSOFT, ACTIVISION TO APPEAL UK'S DECISION TO BLOCK $69B DEAL

Microsoft is framing the proposed Activision deal as a way to make inroads against Sony's PlayStation, which has a far larger market share.

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The FTC has countered the deal will give too much power to Microsoft.

The trial is expected to run until June 29.

The Associated Press contributed to this report.

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