Microsoft Corp. said yesterday that its $69 billion deal to buy Activision Blizzard would benefit both gamers and gaming companies, according to Reuters.
The merger would hinder competition in the gaming industry after the FTC said this month in a complaint aimed at blocking the deal. As a result, Microsoft made those arguments in a filing aimed at convincing a Federal Trade Commission (FTC) judge to allow the deal to go forward.
The FTC said it was concerned that Activision Blizzard’s popular games, including “World of Warcraft” and “Diablo,” could be discontinued on the devices of Microsoft’s Xbox rival, and it will hold a hearing before an administrative law judge in August 2023.
Microsoft President Brad Smith said in mid-December that the company has proposed a legally binding consent order with the Federal Trade Commission to provide Call of Duty games to competitors, including Sony, for 10 years.
“A third-ranked console maker acquiring a game company cannot disrupt a highly competitive industry. Especially when the manufacturer makes it clear that it will not have exclusive access to the game.” Microsoft stressed.
Smith said in a statement this week that he remains confident in the company’s legal case, but remains “committed to reaching creative solutions with regulators. Activision CEO Bobby Kotick said in a statement yesterday that he believes both companies will win their legal battles with the trade commission.
In addition, Microsoft’s deal is also facing scrutiny outside the U.S., with the European Union saying it will decide whether to approve or block the deal by March 23, 2023.
