Microsoft responds to lawsuit, says Activision deal won’t harm competition

Last November 22, the technology giant Microsoft gave a response to the case imposed by the Federal Trade Commission... Eduardo | 23. December 2022

Last November 22, the technology giant Microsoft gave a response to the case imposed by the Federal Trade Commission (FTC). It asks to be allowed to acquire the game publisher Activision Blizzard, arguing that the merger will not affect or harm competition in the industry.

The deal announced earlier this year by Microsoft for the purchase of Activision Blizzard was for the juicy amount of $69 million.

Microsoft claims that this merger between the two parties would strengthen Microsoft’s huge gaming division with the world’s biggest and most popular franchises, including games such as Call of Duty and Overwatch.

FTC files lawsuit against Microsoft

The FTC a few weeks ago filed an antitrust lawsuit against Microsoft to block the deal, alleging that the merger would violate federal law.

With great concern, the FTC says that Microsoft could influence prices and make it difficult for users to purchase Activision games or restrict the use of Activision games to Microsoft hardware only.

The FTC notes in its complaint:

“The FTC is asking this court to protect the world’s largest game companies from further competition from Xbox, thereby turning the antitrust laws on their head. Blinded by ideological skepticism of high-value technology deals and competitors’ complaints, the FTC has lost sight of the realities of the intensely competitive gaming industry and the guiding principles of our nation’s antitrust laws.”

Microsoft responds to the lawsuit

The deal generated great concern and led to the FTC’s move against Microsoft, one of the U.S. government’s significant efforts to take on the technology world by filing a lawsuit to stop the acquisition.

In response to the lawsuit, Microsoft said:

“Xbox wants to grow its presence in mobile gaming, and three-quarters of Activision’s gamers and more than a third of its revenue come from mobile offerings.”

“Xbox also believes it is good business to make Activision’s limited portfolio of popular games more accessible to consumers by placing them on more platforms and making them more affordable.”

Microsoft will continue to contest the lawsuit imposed by the FTC ahead of the promised July 30, 2023 acquisition. This case will go to trial in the FTC’s administrative court on August 2, 2023.

Some highlights of Microsoft’s response

Many personalities in the world of esports continue to join this excellent soap opera, which is reaching its first year since it began. Some debate that it could be a good merger, while others reject it completely.

Others, much more concerned about the situation, have highlighted some key points of Microsoft’s response. Such is the case of Tom Warren, who published on his Twitter account that:

“Microsoft has filed a response to the FTC’s lawsuit challenging the Activision acquisition. In the response, Microsoft admits that “Xbox anticipates that three future [Bethesda] titles…will be exclusive to Xbox and PCs” 👀 these will be primarily single-player games.”

Header: Activision | Microsoft