Microsoft and Activision hit back at the FTC’s attempt to block their merger
Microsoft and Activision have responded to the US Federal Trade Commission’s (FTC) legal attempt to block the companies’ planned merger.
Earlier this month the FTC announced plans to file a lawsuit in a bid to stop Microsoft’s $69 billion acquisition of Activision, which it argues would enable the company to “suppress competitors” to its Xbox consoles and its subscription content and cloud gaming business.
Among other concerns, regulators scrutinising the deal have expressed worries that the deal could significantly reduce PlayStation’s ability to compete, given that it would see Microsoft gain ownership of the Call of Duty series.
In lengthy responses to the FTC’s complaint which were filed on Thursday, Microsoft and Activision argued that the merger would be procompetitive and benefit consumers by making the Call of Duty publisher’s games more broadly available.
“The acquisition of a single game by the third-place console manufacturer cannot upend a highly competitive industry,” Microsoft claimed. “That is particularly so when the manufacturer has made clear it will not withhold the game.f
“The fact that Xbox’s dominant competitor has thus far refused to accept Xbox’s proposal does not justify blocking a transaction that will benefit consumers. Giving consumers high-quality content in more ways and at lower prices is what the antitrust laws are supposed to promote, not prevent.”
In its complaint, the FTC claimed Microsoft has a track record of acquiring valuable gaming content, like upcoming Bethesda games Starfield and Redfall, and making them Xbox exclusives, “despite assurances it had given to European antitrust authorities that it had no incentive to withhold games from rival consoles”.
Microsoft rejected these claims in
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