Microsoft and Activision Blizzard have branded fears over their proposed merger “unfounded” and “absurd”.

They hit out ahead of the Christmas holiday after America’s Fair Trade Commission (FTC) said it planned to block Microsoft’s planned $68 billion (£50 billion) takeover of the ‘Call of Duty’ maker.

Ten US gamers have also filed a lawsuit objecting to Microsoft’s proposed acquisition of Activision, claiming it would result in competition being crushed, choice limited and prices rising.

The megadeal could become the largest acquisition in the history of the gaming industry if it goes ahead, the FTC says.

It’s been reported by The Washington Post the deal has already been approved by regulators in Brazil and Saudi Arabia.

According to Reuters, Serbia’s regulator has also given the deal the green light, while authorities in Britain and the European Union are said to be reviewing the potential merger.

Microsoft said talk of it removing Activision games from rival consoles would be counterproductive to its aim of earning more revenue.

It was reported on December 22 they said in a court filing in response to the FTC’s complaint: “Maintaining broad availability of Activision games is both good business and good for gamers.”

The tech giant stressed Activision’s financial value comes from the continued sale of popular games such as ‘Call of Duty’ on the Sony PlayStation, adding: “Paying $68.7 billion for Activision makes no financial sense if that revenue stream goes away.”

Activision added: “Withholding or degrading ‘Call of Duty’ on PlayStation would eliminate this ability to cross-play and destroy the broad ‘Call of Duty’ community that drives the game’s success.

“The player backlash from making the ‘Call of Duty’ franchise Xbox-exclusive would be devastating.”