There are no "substantive" settlement discussions underway between the United States Federal Trade Commission (FTC) and Microsoft regarding its purchase of Activision Blizzard.

That's according to FTC attorney James Weingarten – as reported by Reuters – who said during a pre-trial hearing that neither side of the dispute had entered into discussions to settle the matter outside of court.

This comes in the wake of the FTC filing a lawsuit in December to block Microsoft buying Activision Blizzard. This is due to concerns that it would give the Windows giant too great an advantage within the video games industry and could cause massive damage to PlayStation maker Sony's business. 

There were previously reports that Microsoft was planning sweeteners to ensure regulators approved the deal, such as guaranteeing that Call of Duty would still be available on competitors such as PlayStation and Steam, as well as Nintendo Switch. 

The case is currently set to be ruled on by FTC administrative law judge Michael Chappell in August of this year. Microsoft and Activision Blizzard were hoping the deal would be cleared by June 2023.

The acquisition is worth a record-breaking $68.7 billion.