In its response to the Federal Trade Commission’s lawsuit,Activision Blizzardstates that the regulatory authority is pursuing an “ideologically-fueled effort to ignore settled law,” and believes arguments levied by competitors such as Sony to be blinding it.Activision Blizzardvehemently disagrees with the attempt to block its acquisition by Microsoft and has continued to escalate its antagonistic rhetoric towards any that may prevent it.
Microsoft’s proposed $69 billion acquisition of Activision Blizzard began to face its strongest challenge yet earlier this month whenthe FTC announced that it would sue to block the largest dealin video game history. If it were to go through, Microsoft would assume control of incredibly successful IPs, includingCall of Duty,World of Warcraft, andCandy Crush. The FTC cited this consolidation of profitable franchises as potentially harmful to the industry and consumers, especially if subsequently produced content was to be made exclusive. Seemingly swayed by concerns raised by Sony, the FTC claimed that Microsoft would possess “means and motive” to harm competition.
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Activision Blizzard responded with a 35-page defense of the merger in which the video game developer and publisher did not mince its words. Commencing with a brief reaffirmation that the deal will prove beneficial to various industry stakeholders, the company then immediately accuses the FTC of ignoring “settled law and what decades of experience tells us is good for competition.” Activision alleges that “the FTC’s theory rests on the entirely unfounded assumption that” Microsoft “will withhold ordegrade other gaming platforms' access toCall of Dutygames.”
TheCall of Dutyfranchise was made the beating heartof reasons to oppose Microsoft’s acquisition by Sony, who has been vocal in claiming how vital the hugely popular first-person shooter games are to its PlayStation console since September. Jim Ryan, President and CEO of Sony Interactive Entertainment, has continually rebuked promises from Microsoft that pertain to maintainingCall of Dutyon PlayStation, describing previous proposals as “inadequate on many levels.”
Despite Sony’s insistence, Activision Blizzard outlines how “takingCall of Dutyexclusive would be disastrous for Xbox.” Given how often Phil Spencer has signaled his intention to keepCall of Dutyon other consoles, it would be incredibly damaging if the franchise was to be made Xbox exclusive, from both a financial and reputational perspective. Nonetheless, sources close to the FTC suggest political machinations within the regulatory body mean that rather than block the deal entirely, it will seek toextract concessions from Microsoft to quell its concernsand avoid potential fallout.
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