Toni Dimaano Tech 12.23.2022 02:Dec AM EST

Microsoft Responds To FTC's Activision Blizzard Lawsuit

Microsoft submitted a 37-page document on Thursday, outlining its case for why the company should be permitted to acquire Activision Blizzard.

The said document is filed in response to the Fair Trade Commission's claims that Microsoft's acquisition of the gaming giant would hurt competition in the industry.

Microsoft Pushes Back On The FTC's General Concerns

In an effort to portray itself as a relatively weak player in the gaming industry in comparison to its rivals, it also contains a lot of the self-deprecation for which Microsoft has recently become known.

It can be remembered that the proposed $68.7 billion acquisition was challenged by the FTC, which stands out as the biggest government opposition Microsoft has faced.

According to CNBC, this is since a dispute with the Justice Department two decades ago over Windows' dominance in the operating system market.

In the document, Microsoft claims that the purchase of a single game by the third-place console manufacturer cannot completely upend the highly competitive market.

Microsoft president Brad Smith also says that the company is committed to working with regulators to come up with innovative solutions.

This will safeguard competition, consumers, and tech industry workers even though they are confident in their case.

Activision even asserted in its filing that the FTC was misled by rivals' complaints and ideological skepticism of high-value technology deals.

"There is no sensible, legitimate reason for our transaction to be prevented from closing," Activision Blizzard CEO Bobby Kotick said in a statement, Axios writes.

He continued, pointing out the abundance of gaming platforms, the availability of free game development tools, and the expansion of distribution channels as examples of the industry's intense competition and low entry barriers.

FTC Presents The Other Side Of The Lawsuit

According to a lawsuit filed by the FTC earlier this month, the Activision Blizzard acquisition could give the tech giant the ability to censor or lower the quality of important games.

The future of Call of Duty has also been a major source of worry, to the extent that Xbox CEO Phil Spencer publicly assured fans that the series would continue on PlayStation, The Verge writes.

In its lawsuit, the FTC also alleged that Microsoft had promised the European Commission that it would have no incentive to stop people from playing games from ZeniMax, a game publisher it acquired in 2021.

However, the tech giant announced that it would make some ZeniMax games exclusive after the European Commission gave its approval for the ZeniMax agreement.

Regulators in the UK and EU have also expressed skepticism toward the agreement, despite Microsoft's best efforts to make concessions that would convince them to change their minds.

CNBC says that Microsoft would be the third-largest gaming company in the world by revenue if the deal goes through, behind Tencent and Sony.

Aside from the FTC rallying against the acquisition, it can be remembered that two teams of Activision Blizzard employees have decided to unionize in the months since the deal announcement.

Despite this, Microsoft has declared its dedication to initiatives that would make it simpler for workers to choose whether to join or establish a union.