Microsoft CEO Satya Nadella to defend planned takeover of game-maker Activision Blizzard in court

 SAN FRANCISCO (AP) — Microsoft CEO Satya Nadella is due in court Wednesday to defend the company's proposed $69 billion takeover of video game maker Activision Blizzard against an attempt by federal regulators to block the deal. 

The hearing represents a major test of the FTC’s amped-up oversight of Big Tech under Chairperson Lina Khan, who has been outspoken about her belief that U.S. regulators were too lenient in past deals that helped increase the power of companies such as Amazon, Google and Facebook. The courtroom tussle with Microsoft comes six months after the FTC took Facebook owner Meta Platforms to court in Silicon Valley to try to stop a takeover of a virtual reality fitness company only to be rebuffed by the judge in that case. 

Microsoft, maker of the Xbox console, has hailed the deal with Activision Blizzard as a way to make popular Activision games such as Call of Duty more widely available. But federal antitrust enforcers, as well as Microsoft's main gaming rival Sony, have argued that it would harm competition. 

The U.S. Federal Trade Commission is trying to persuade Corley to issue an order that would prevent the takeover from being consummated before a more extensive administrative trial begins Aug. 2 in Washington. Microsoft is fighting to close the deal ahead of a July 18 deadline that could trigger it having to pay a $3 billion breakup fee to Activision.