
Strap yourselves in, folks — here we go again!
Earlier this month, the US Federal Trading Commission announced it was filing a suit against Microsoft's attempted takeover of Activision Blizzard, and now Microsoft and ActiBlizz have revealed their responses in court documents.
The Activision Blizzard responses are particularly interesting, directing a lot of criticism towards the FTC. It's even referenced that the commission is trying to "ignore the facts and rewrite antitrust law" at one point in the statement:
"The FTC ignores the significant benefits of the Transaction in favor of a warped attempt to ignore the facts and rewrite antitrust law and settled precedent to protect Xbox's competitors from hypothetical harm that has no basis in marketplace realities."
The entire document is a pretty long read, so we recommend checking it out for yourself if you're interested, but basically Activision Blizzard goes into detail about why there's no reason to worry about Call of Duty becoming exclusive on Xbox, why the suggestion that Call of Duty is a powerful influence on platform adoption is "baseless, contrived, and lacking in any legal significance", why adding Activision Blizzard content to multi-game subscription and cloud gaming services would be beneficial for consumers, and much more.
The final paragraph of the introduction to the statement sums it all up pretty well:
"The FTC's disregard for these benefits to consumers and focus on supposed harms to Xbox's deep-pocketed competitors betrays a fundamental disconnect between the FTC's theories and the antitrust laws' underlying purpose, which is to protect competition, not competitors.
The FTC is asking this Court to protect the world's largest gaming companies from further competition from Xbox, and thereby turning antitrust on its head. Blinded by ideological skepticism of highvalue technology deals and by complaints from competitors, the FTC has not only lost sight of the realities of the intensely competitive gaming industry, but also the guiding principles of our nation's antitrust laws."
The company isn't holding back, then, and while Microsoft's responses are less critical on the whole, Sony's reluctance to accept a 10-year Call of Duty deal is brought up on a couple of occasions, and it's pointed out that "antitrust laws do not serve to insulate the dominant market player (Sony) and its favored business model from competition."
What do you make of these comments? Let us know down below.
[source fm.cnbc.com]
Comments 31
every other site, is doing festive year of gaming feature types.
PX is just getting this nonsense with no new info,
why not focus on what xbox have for now?
i should also say ABK shouldnt openly say this.
more likely to annoy regulator and them look harder.
just let them do what they need to, and it will go through.
hell even useless Jim is quiet for now
Used to be once a week, then twice and now it's every day. And we have another year atleast of this.
If these regulators try to block Microsoft and ABK, the deal will go through in court. Actually, they could prove that the acquisition would balance things a little bit.
EDIT: Jim is quiet because he's busy manipulating and lobbying regulators.
@Kaloudz Absolutely. And, at least this time, Bobby is right.
@stvevan You say that, but many other sites are also covering this news (just a couple of examples here):
https://www.eurogamer.net/microsoft-claims-ftcs-lawsuit-against-activision-blizzard-buyout-is-unconstitutional
https://www.gamesradar.com/microsofts-response-to-ftc-lawsuit-against-activision-blizzard-acquisition-is-exactly-what-youd-expect/?
Plus, the majority of your (and many other people's) comments over the past month have been on articles related to Activision Blizzard... we're going where the demand is.
You'll still see some more light-hearted stuff from us over the next couple of days and looking ahead to 2023.
Surely if a company wants to sell it should be allowed to sell
@FraserG its fine, i understand that it drives you clicks and revenue, everyone needs that.
its just boring reading 'Sony are evil' in all comments
@stvevan Yeah, I totally get the frustration as I've said before. Hopefully this won't drag all the way through 2023 (I have a bad feeling it might though).
They are trying too hard for this to be a good thing. I don't play my Series S or Activision games and it still seems fishy.
@Sifi i own both consoles.
i say MS will get the deal done.
Sony are no saints.
i just dont get why people dont understand its Sonys job to oppose it. it happens in any type of large merger.
Ive just about had enough of these stories.
I used to enjoy this site befire it became flooded with this constant nothing stories and the argumentitive rubbish it encourages.
Im checking out from pure and going elsewhere where the balance is better. For those I could have a reasonable discourse with, have a great Christmas.
FTC is just a political arm now. They simply desire to keep big companies from getting bigger. Their core principle of protecting competition is long forgotten. They should see that this is good for gaming and good for the workers of one of the most ethically challenged companies in gaming. Even if you look at this deal through the messed up microscope the FTC used (high-end "serious" console gamers) it still benefits competition.
I'll be the contrarian and say I love these articles, and much more since they've unleashed Brad Smith. And I say this as someone with no interest in CoD, I just love the drama.
No lies told, by Bobby of all people.
All the Sony fans on an Xbox site don't want anymore posts about this lol! First off, it's the end of the year. This is gaming news drought time. Secondly, a lot of us find this interesting how the process goes (I do). And lastly, don't click the article then! You don't have to read the article and comment. People literally coming in here to type comments that they don't have time for these articles. smh...
So, this is actually kind of a big deal right now for the US. Not so much this particular merger, but the FTC as a whole.
The FTC is taking major tech companies to task at the moment. Meta is now facing antitrust scrutiny. Epic just got slapped with fines. Microsoft is in their radar. Twitter is now in its radar (unrelated to Musk).
Things aren't pretty at the moment. Plus, the FTC revised some of rules about unfair business practices back in November.
Love it or hate it, plenty of my tax dollars are now going to be fighting tech mergers in the foreseeable future.
IGN has a new poll asking who had the strongest 2022. Here are the current results:
PlayStation 73.7%
Xbox 15%
Nintendo 11.3%
I’m having trouble imagining the acquisition getting blocked!
@GamingFan4Lyf Lol, the tech industry has kept the global market alive! Its where the real market value is! The industries you should be worrying about are big banks & big insurance. bloated industries kept alive as TBTF and actually sucking value out of the whole worlds economy! IMO!
@Titntin Merry Christmas buddy, hope to see you around. I feel the same, and there’s actually some I have to actively avoid on here, as I used to be known on PushSquare, but left due to a person who writes a wall of text, is always right and so forth.
It just gets so dull. I’d rather debate with a brick wall.
Anyway, some are brilliant to interact with, like yourself, so have a good one!
@stvevan There's no regulator to annoy. The regulators are done. They filed the suit. The ball moves to the court's court. This is an appeal to them that the plaintiff (regulators) have their head up their ideological rear ends and are filing a frivolous suit, and wasting the court's time and money to ignore facts, laws, and precedent (case law) to chase an imagined agenda.
Thing is...it's 100% right. Whether for or against the merger, opinion on it doesn't matter now, only the law matters, and according to LAW, everything said here is spot-on.
Savor this moment. It's the first true, honest, and not at all abusive thing Activision has said in the last 20 years!
What ABK and Microsoft's filing was, mostly, was picking apart the case the FTC filed and going through it, paragraph-by-paragraph and going 'Not relevant to us', 'We refute it' or 'Refer to source'...
And while it's immensely frakking boring, it points out how the FTC are in la-la land trying to say that the ABK deal is a Bad Thing, since their whole case relies on vague details and fear-mongering.
@gogolpoe I don't disagree with you. There are more appropriate battles to fight.
I'm sorry but Activision blizzard talking about the law is so ironic
benefits of the Transaction in favor of a warped attempt to ignore the facts and rewrite antitrust law and settled precedent to protect Xbox's competitors from hypothetical harm that has no basis in marketplace realities
This was written by the same Activision that was laughing all the way to the bank, with the money-hat that Sony paid for COD and Destiny exclusivity perks for an entire console generation + 2 years from the current gen one.
Now they are arguing in favour of Xbox.. the power of money has no boundaries really, it also shows that for these companies is just business. We are merely profit generating inconveniences 😁.
This makes the most sense to me of any the points made before. It’s the bare facts. Sony is a weak company anytime they face competition. Look to all the divisions they shut down. They are scared and don’t need to be cause MS isn’t trying to shut them down but be more competitive. Now if MS said COD is coming exclusively, i could see Sony saying something.
Gloves are off! They are preparing for a fight and stating their stance from the offset. I don’t think I the FTC stands a chance personally. I appreciate the coverage off this, as let’s be honest, this is going to dominate the entire marketplace for the next year.
@Sol4ris Oh don’t be fooled if the deal fails, Activision will be more than happy to continue to take Sonys money for more exclusivity unless Microsoft offers them more. It’s all ‘just business’ at the end of the day. Morales have no place in business.
@GamingFan4Lyf And it’s all so the women at the top can advance her political career. Nothing more. There is ALWAYS an arterial motive or different angle being played when it comes to politicians, always. And it’s usually one that benefits them personally.
@Titntin I think you once said it to me? I’ll give you a hug if it makes it better? Unfortunately I believe we’ll have at least another year if this yet.
BUT
We damn well, and should, get a barrage of top games next year. Staring for me in February with Atomic Heart.
Let’s face it, the whole motivation of the FTC is political. It’s hard to explain them using Antitrust laws to support the dominant party in a market otherwise.
Well the FTC is being highly inconsistent with their past actions. It's ridiculous for them to be making such a federal case out of this when they didn't make a peep about bigger corporate media acquisitions.
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