Tue, May 21, 2024

Microsoft vs FTC- Fight Worth a Lookout

Microsoft VS FTC - Fight Worth a Lookout

Xbox Maker Says FTC Can’t Prove that The Deal Harms Consumers

Microsoft Corp Inc. contends that its proposed $69 billion deal for Activision Blizzard Inc. would harm competition in the video-gaming market. The accusations come from the US Federal Trade Commission. However, Microsoft said the alliance would offer more alternatives to players and game developers in a submission to the FTC on Thursday.

“The commission cannot meet its burden of showing that the transaction would leave consumers worse off,” Microsoft claimed.  

The FTC decided to bring a lawsuit blocking the combination of Microsoft and Activision Blizzard. An industry giant makes blockbuster video games like Call of Duty. According to the company, limiting rivals’ access to Activision’s biggest titles is a worry that the agreement will harm other players in the $200 billion gaming market.

In a statement released this week, Microsoft indicated that it is seeking an agreement with the US and European regulators investigating the merger’s potential anticompetitive outcomes.

Unlikely Friendship in The Face of Hostility

Microsoft offered rival Sony Group Corp. a deal in order to get regulatory clearance. Accordingly, Activision has the right to sell Call of Duty as part of its gaming subscription package. Regulators, however, have not been persuaded by Microsoft’s proposed concessions thus far.

Microsoft’s attempt to purchase Activision was met with resistance from rival gaming firms. However, Sony accused the firm of attempting to trap consumers in the Xbox. This is in addition to using its other offerings to “foreclose cloud gaming at a crucial juncture in its development.”

According to Microsoft’s submission, there is “no proof” that it intends to exclude rivals from Call of Duty during its proposed merger.

Microsoft’s attempted acquisition of Activision Blizzard is one of the 30 biggest acquisitions in history. Microsoft would get some of the most popular video game brands in the deal. These include Call of Duty and World of Warcraft. The Halo franchise and Minecraft, a virtual-world-building game, are already owned by the Xbox maker.

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