According to some onlookers like industry analyst Michael Pachter, the FTC’s case against the deal is an attempt to win written concessions from Microsoft without having to take the deal to court — something Pachter expects will be bad for the FTC. In fact, there’s little to no precedent for this kind of deal, and when you examine the gaming industry properly, it’s among the most competitive and vibrant industries out there, with the exception of Google and Apple’s control of mobile app stores (a de facto monopoly for a company the FTC should investigate).
The US Federal Trade Commission will “likely” be crushed in court, which is why it won’t sue. This matter is resolved by Microsoft agreeing to a list of demands to maintain the status quo; FTC drops its objections https://t.co/vA0BBURtlqNovember 24, 2022
Regardless, Activision’s chief of staff recently issued a statement to us and publicly in a tweet indicating that Activision is willing to fight for the merger in court, if necessary. Lulu Cheng Meservey confirms that Microsoft and Activision are working with regulators to address their concerns as well.
We are committed to continuing to work collaboratively with regulators around the world to allow the transaction to move forward, but we will not hesitate to fight to defend the transaction if necessary.November 24, 2022
There is no doubt that the deal will eventually pan out. The regulators are right to investigate and scrutinize the deal. Regulators failed last year to properly assess how Meta buying of Instagram and WhatsApp might limit consumer choice and innovation, for example, while also allowing Google and Apple to walk away from a blanket monopoly over how they deliver software on nearly all of the world’s mobile devices.
Windows, by comparison, is quite open, with a wide range of competing storefronts and businesses. Microsoft has repeatedly brought up the Apple-Google mobile duopoly in its responses to regulators, noting its plans to build a competing Xbox App Store for mobile, which will likely eventually force regulators Apple and Google to let in on their platforms.
As the EU, UK Capital Markets Authority and US Federal Trade Commission continue to evaluate the merger, I suspect we will continue to hear about it for the foreseeable future. Microsoft previously said it hoped to close the deal by the summer of 2023.
Hey, while you’re here…why don’t you check with us Xbox Black Friday Deals live blog?! It’s good, I promise. – Jeez
- gaming headset deals: best buy (Opens in a new tab) | Walmart (Opens in a new tab) | Amazon (Opens in a new tab) | scanner (Opens in a new tab) | Dale (Opens in a new tab)
- Xbox controller deals: Amazon (Opens in a new tab) | scanner (Opens in a new tab) | Dale (Opens in a new tab) | Walmart (Opens in a new tab) | best buy (Opens in a new tab)