Microsoft tells judges its $69bn Activision deal would benefit gamers
Last updated on: 23 December,2022 08:40 am
Microsoft tells judges its $69bn Activision deal would benefit gamers
(Reuters) - Microsoft Corp (MSFT.O) said on Thursday its $69 billion bid to buy "Call of Duty" maker Activision Blizzard (ATVI.O) would benefit gamers and gaming companies alike.
Microsoft made the argument in a filing aimed at convincing a judge at the U.S. Federal Trade Commission to allow the deal to proceed, after FTC commissioners said the merger would hamper competition in the gaming industry in a complaint this month aimed at blocking the deal.
In a complaint on Dec. 8, the FTC said its concern was that Activision s popular games, including "World of Warcraft" and "Diablo," potentially would stop being offered on devices that rival Microsoft s Xbox. It set a hearing before an administrative law judge for August 2023.
Microsoft President Brad Smith said in mid-December the company had offered to sign a legally-binding consent decree with the FTC to provide "Call of Duty" games to rivals including Sony (6758.T) and others for a decade.
"The acquisition of a single game by the third-place console manufacturer cannot upend a highly competitive industry. That is particularly so when the manufacturer has made clear it will not withhold the game," Microsoft said in Thursday s filing.
Smith said in a statement this week he was still confident in the company s legal case but remained "committed to creative solutions with regulators."
Activision CEO Bobby Kotick said in a statement on Thursday he believes that the companies will prevail in a legal fight with the trade commission.
The Biden administration has taken a more aggressive approach to antitrust enforcement. The US Department of Justice recently stopped a $2.2 billion merger of Penguin Random House, the world s largest book publisher, and smaller US rival Simon & Schuster.
The Microsoft deal is also facing scrutiny outside the United States, with the European Union saying it would decide by March 23, 2023, whether to clear or block the deal.