FTC told by Microsoft that Activision’s $69B deal will not hurt competition

On Thursday, Microsoft filed a response in Federal Trade Commission lawsuit that sought to block it $68.7 billion purchaseActivision Blizzard claims it would not affect competition in the video-game industry.

In a lawsuit challenging the acquisition of the software giant, the Federal Trade Commission stated that the company “will” be “acquired”.Hurt competitionAmong the major game console makers, including Sony and Nintendo. Microsoft replied in its filing, stating that the acquisition was intended to make its Xbox console more competitive.

In its 37-page response, Microsoft stated that Xbox wanted to increase its mobile gaming reach. Activision has three-quarters its players and more then a third of its revenues come from its mobile offerings. “Xbox also believes it’s a smart idea to make Activision’s limited selection of popular titles more accessible to consumers by making them available on more platforms and making them more easily accessible to everyone,” Microsoft stated in its 37-page response.

Deal, Announced earlier this yearThe acquisition is the largest ever in both the software and video game industries. Microsoft, which also makes Xbox video games consoles, has been in contact with regulators around the globe to seek approval for the acquisition. Microsoft previously stated that it expected to close on the deal in the summer 2023.

The FTC’s action against Microsoft is one of the largest US government efforts to combat the tech industry. This sector has included companies such as Microsoft, Alphabet, Alphabet, and Meta. Some of the most valuable companies on the planet. Competitioners and regulators are wondering if tech companies have too much power, and if they are operating like monopolies amid all this growth.

The agency argued that the December 8 lawsuit against Microsoft’s acquisition of Call of Duty was unfounded. They claimed that Microsoft had used its past acquisitions in order to create several high-profile titles, such as Starfield space exploration gameVampire Redfall shooting gameOnly for devices that run on its software. Microsoft claimed it offered Sony the option to sell the military shotgun as part of its products. PlayStation PlusMicrosoft filed that it stated that “Sony refuses” to deal.

Microsoft replied that the acquisition of one game by a third-place manufacturer of consoles cannot disrupt a highly competitive market. “This is especially true when the manufacturer has made clear that it will be able to block the game. It is not right to block a deal that would benefit consumers simply because Xbox’s dominant competitor has refused to accept the proposal.

Microsoft said it hopes for an amicable solution that will benefit all industry players.

Brad Smith, Microsoft vice president and president, stated in a statement that “even with confidence in our cause,” he said.

Bobby Kotick, Activision CEO, also spoke out in defense of the deal Thursday. He stated that there was “no reasonable or legitimate reason why our deal shouldn’t close.”

The FTC did in fact not immediately respond to a request to comment.