microsoft corp MSFT said it plans to contest the Federal Trade Commissions lawsuit to block its $68.7 billion — $95 per share — deal to acquire a video game developer Activision Blizzard Inc ATVIfollowing the FTC’s allegations that the deal would be illegal.

What happened: In the FTC’s Dec. 8 lawsuit, the regulator claimed the acquisition would give the Xbox maker the ability to restrict customer access to Activision’s games outside of its own platforms.

In its complaint, the FTC claimed that Microsoft could increase costs, decrease the quality of Activision’s content, or even block access to the games entirely for those who don’t use its technology.

That Bill Gates-founded tech giant argued to the FTC that the acquisition would not threaten competition in the industry as it lags behind its peers, particularly in video game consoles Sony Group Corp SONY PlayStation and has a small footprint in mobile game production.

Microsoft has also stated that it expects the sector to become more competitive in the future as cloud gaming becomes more popular.

Some legal experts, after to The Wall Street Journal said Microsoft will likely base its defense on the above arguments, as well as the fact that it is seeking a vertical merger, meaning it is buying a company in its supply chain as opposed to a direct competitor.

Microsoft has until December 22 to respond to the FTC’s complaint.

Why it matters: The FTC might find the case difficult to win because courts have historically not considered deals between companies specializing in different stages of the production process in the same industry — so-called vertical mergers — as a threat to competition. Eric TalleyProfessor at Columbia Law School, opposite WSJ.

“The commission may need to persuade a judge to change the law,” Talley said. “That makes it a difficult case for the FTC to win, even though they probably knew it was the case.”