Learn Microsoft’s response to the FTC’s Activision Blizzard lawsuit

Deal Score0
Deal Score0

Microsoft has filed its response to the lawsuit filed by the US Federal Trade Commission to dam the corporate’s acquisition of Activision Blizzard. Within the 37-page doc, which you’ll be able to learn in full beneath, Microsoft argues its case for why its $68.7 billion acquisition ought to undergo — it additionally defends its acquisition of Bethesda proprietor ZeniMax, whereas admitting that it’s planning to make three future titles from the corporate unique to Xbox and PC.

Microsoft’s submitting pushes again in opposition to the FTC’s issues usually, and likewise addresses the regulator’s particular arguments. It additionally incorporates plenty of the trademark self-denigration that Microsoft has turn into well-known for in latest months, because it tries to color itself as a comparatively weak participant within the gaming house in comparison with its rivals.

Microsoft even made some charts to indicate you the way its undoubtedly not a giant deal in gaming, and the way it shopping for Activision Blizzard would barely put a dent within the cell panorama.
Charts: Microsoft

In its grievance, the FTC argued that buying Activision Blizzard would “allow Microsoft to suppress rivals to its Xbox gaming consoles and its quickly rising subscription content material and cloud-gaming enterprise.” There’s additionally been plenty of concern about the way forward for Name of Obligation, to the purpose the place Xbox boss Phil Spencer publicly promised that the franchise might be out there on PlayStation so long as PlayStations exist. In its response to the FTC, Microsoft cites its promise to increase, not restrict, the supply of Activision’s flagship sequence by bringing it to the Nintendo Switch.

In a press release to The Verge, Activision Blizzard’s CEO Bobby Kotick additionally argued for the deal to undergo, saying:

There isn’t a smart, respectable cause for our transaction to be prevented from closing. Our trade has monumental competitors and few limitations to entry. We’ve seen extra units than ever earlier than enabling gamers a variety of decisions to play video games. Engines and instruments are freely out there to builders massive and small. The breadth of distribution choices for video games has by no means been extra widespread. We imagine we are going to prevail on the deserves of the case.

And right here’s a direct assertion from Microsoft president Brad Smith:

Even with confidence in our case, we stay dedicated to artistic options with regulators that can shield competitors, shoppers, and employees within the tech sector. As we’ve discovered from our lawsuits up to now, the door by no means closes on the chance to search out an settlement that may profit everybody.

Right here’s the remainder of Microsoft’s argument about why there shouldn’t be antitrust issues with it shopping for Activision Blizzard:

Replace, 10:05PM ET: Added assertion from MS president Brad Smith.

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