After a big loss last week in district court, the agency's remaining options are: pursue its fight in the internal FTC court; pursue its parallel case before the appeals court; pursue both; or settle with Microsoft or drop the matter entirely.
The source, who is familiar with the matter, declined to give any other details.
U.S. regulators, however, have said it could harm consumers by possibly limiting the reach of Activision's games.
The tech giant is separately still trying to get the deal approved separately in Britain.
Reporting by Diane Bartz; editing by Susan HeaveyOur Standards: The Thomson Reuters Trust Principles.
Persons:
Diane Bartz, Susan Heavey
Organizations:
U.S . Federal Trade Commission, Activision, Reuters, Microsoft, Thomson
Locations:
California, Britain