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Takes place in a neutral zone where both of their powers work.
Bloodlusted deathmatch starting in simulation Chicago
Who takes it?

Does neutral ground mean that Murdoch can manipulate the environment the same as on the Dark City?

Yep. And Neo can manipulate the world like the Matrix as well.

Murdoch had complete control over his environment. Could create large formations rise up and protect him/ hit Neo if need be. Could alter the entire infrastructure of the environment around him to protect him. He transformed the entire space platform into what he wanted.

His Telekininesis was powerful enough to no doubt blast or hold a flying Neo in his tracks.

I would wager that a Murdoch at the end of Dark City is more capable than Neo at the end of the Matrix Trilogy.

Blind human Neo had the interesting power of electrocuting flying machines in his human state at the end though. I wonder if that power could be applied to a human?