Judge shoots down FTC attempt to stall Microsoft-Activision merger
The regulator feared the Windows giant would, post-acquisition, ensure Activision's popular titles appeared only on its Xbox series, and lock out other consoles and gaming systems. That would reduce choice and competition in the video games market. Microsoft promised it wouldn't do that, such as by vowing to keep Call of Duty available on rival Sony's PlayStation line, and the judge bought it.
"Microsoft's acquisition of Activision has been described as the largest in tech history. It deserves scrutiny. That scrutiny has paid off: Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox," the judge wrote in her"The court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition.
She said the FTC hadn't shown clear evidence that the proposed merger would result in Microsoft restricting access to Activision's software on non-Redmond platforms. She dismissed evidence that the historically monopolist-minded Microsoft would abuse its position, pointing out it was committed to open access for the time being.
The judge also cast doubt on the testimony of Harvard economics Professor Robin Lee, saying that his claims that the deal would harm competition were unproven and based on faulty logic.Microsoft's Xbox chief Phil Spencer. "The evidence showed the Activision Blizzard deal is good for the industry and the FTC's claims about console switching, multi-game subscription services, and cloud don't reflect the realities of the gaming market."
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