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The
Federal Trade Commission has asked a judge to stop the proposed
acquisition because, it argues, it would give Microsoft, maker
of the Xbox console, exclusive access to Activision games which
include "Call of Duty," one of the best-selling games of all
time. That would leave Nintendo and Sony Group out in the cold,
the FTC has said.
Microsoft CEO Satya Nadella sought to allay those concerns on
Wednesday. Asked if Microsoft would have any incentive to shut
out Sony's PlayStation in order to sell more Microsoft Xbox
consoles, Nadella responded: "It makes no economic sense and no
strategic sense."
To address the FTC concerns, Microsoft has agreed to license
"Call of Duty" to rivals.
The FTC has asked Judge Jacqueline Scott Corley in San Francisco
to temporarily stop the deal from closing in order to allow the
agency's in-house judge to decide the case.
In the past, the side that lost in federal court often conceded
and the in-house process was scrapped.
The FTC, which enforces antitrust law, has taken a harder line
on mergers during the Biden administration to protect consumers
from being disadvantaged by powerful corporations.
Activision CEO Bobby Kotick testified Wednesday that if
Microsoft bought his company and blocked other gaming platforms
from offering "Call of Duty," it would alienate many of the 100
million monthly active users.
"You would have a revolt if you were to remove the game from one
platform," he said.
Resolving the U.S. lawsuit is one of several key antitrust
battles Microsoft and Activision have fought around the world.
Microsoft's bid to acquire the "Call of Duty" videogame maker
was approved by the European Union in May, but British
competition authorities blocked the takeover in April.
(Reporting by Diane Bartz; Editing by Lincoln Feast.)
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