Judge grills FTC about data in hearing on Microsoft deal to buy
Activision
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[June 30, 2023] By
Diane Bartz
WASHINGTON (Reuters) -The judge hearing the U.S. Federal Trade
Commission's fight against Microsoft's planned purchase of "Call of
Duty" maker Activision Blizzard on Thursday pressed government lawyers
about the data behind their arguments and asked why there was so much
fuss over "a shooter video game."
The Federal Trade Commission has asked the judge to stop the proposed
$69 billion acquisition because, it argues, it would give Microsoft
exclusive access to Activision games including "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.
Xbox console-maker Microsoft has pressed for a decision before the July
18 termination date for the deal, and a ruling could come as early as
next week. The deal had been announced in January 2022 and the FTC sued
to stop it in December last year.
Judge Jacqueline Scott Corley in San Francisco pressed FTC lawyers on
where their economist got the data to show the deal would harm
consumers.
The FTC has said that if Microsoft bought Activision, Microsoft would
have the incentive and the ability to harm competition in markets
related to consoles, subscription game services and cloud gaming.
![](http://archives.lincolndailynews.com/2023/Jun/30/images/ads/current/ldn_sda_NILA_012823.png)
"The harm here is we think is substantial in locking up Activision
content," said FTC lawyer James Weingarten.
After an extended back and forth over how the FTC came to its
conclusions, Corley said: "All this is for a shooter video game."
Microsoft's Beth Wilkinson, who argued that "Call of Duty" was not
essential to any gaming platform, said the deal would mean the game
would be licensed broadly.
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![](../images/063023PIX/busine6.jpg)
Activision Blizzard CEO Bobby Kotick
leaves with Chief Communications Officer at Activision Blizzard Lulu
Cheng Meservey after testifying at the northern district of
California during a trial as U.S. Federal Trade Commission seeks to
stop Microsoft deal to buy Activision Blizzard, in Downtown San
Francisco, California, U.S. June 28, 2023. REUTERS/Carlos Barria
![](http://archives.lincolndailynews.com/2015/May/02/images/ads/current/guzzardo_lda022609.png)
"More consumers are going to get the game. And that's good for
gamers, but it's also good for Microsoft," she said.
To address the FTC concerns, Microsoft has agreed to license "Call
of Duty" to rivals.
Microsoft CEO Satya Nadella sought to allay antitrust concerns on
Wednesday by saying the company would have no incentive to shut out
Sony's PlayStation in order to sell more Microsoft Xbox consoles.
"It makes no economic sense and no strategic sense," Nadella said.
Corley has been asked to pause the deal so the agency's in-house
judge can rule. 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.
Microsoft's bid to acquire the "Call of Duty" videogame maker also
faces opposition from British competition authorities.
Canada is still monitoring the planned transaction.
(Reporting by Diane Bartz; Editing by Lincoln Feast)
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