According to foreign media reports, Sony has been arguing that Microsoft’s proposal to acquire Activision Blizzard is anti-competitive and should be blocked. Now, Google and Nvidia have become the latest two companies to try to block the deal.
Google and Nvidia have joined Sony in expressing concerns about Microsoft’s plans to acquire Activision Blizzard, media reported. The two companies have given the U.S. Federal Trade Commission (FTC) information in support of one of its key arguments, that such a takeover would harm competition in the gaming industry.
It is reported that Microsoft announced in January 2022 that it would acquire Activision Blizzard at a price of US$95 per share. October – June 2023) to be completed.
However, the deal has raised concerns from regulators. The FTC is reported to have filed an antitrust lawsuit in an attempt to block Microsoft’s acquisition of Activision Blizzard on the grounds that the deal would give Microsoft an unfair advantage in a key emerging area of the gaming industry. The case has reportedly moved to court following a pre-trial hearing earlier this month.
According to foreign media, Microsoft has formally challenged the lawsuit and believes that the transaction is fundamentally conducive to competition because it increases competition.
According to media reports, FTC Administrative Law Judge Michael Chappell will rule on the deal after a hearing in August 2023.
If the deal goes through, Sony would be one of the main companies affected. Sony, whose PlayStation division is a competitor to Microsoft’s Xbox, is concerned that Activision Blizzard’s Call of Duty series could become an Xbox exclusive.
But Microsoft says that won’t happen, proposing a 10-year licensing deal with Sony that would see every new Call of Duty game come to Sony’s PlayStation platform on the same day it launches on the Xbox platform.
In addition, sources revealed that the proposal also includes allowing Sony to sell Call of Duty games through the PlayStation Plus subscription service. So far, Sony has not accepted the offer, and the company is still fighting the acquisition.
