The US Congress has been on Sony’s case since it started opposing Microsoft’s landmark purchase of Activision Blizzard. Recently, US legislators have called out the PlayStation maker for alleged underhanded business practices against Xbox as well as hampering the progress of the Xbox via its exclusivity deals in Japan.
Congress representatives now have the US Federal Trade Commission in their crosshairs. A lawmaker asked the antitrust regulator to explain why it sided with Sony in its opposition to the Microsoft and Activision Blizzard merger. The FTC filed a lawsuit several months ago to block the landmark deal that is worth $69 billion.
During the April 18 hearing for the FTC budget for 2024, Republican representative Diana Harshbarger took the opportunity to inquire why the agency “sided with Sony” in blocking the deal between Microsoft and Activision Blizzard. The lawmaker alleges that the FTC is protecting Sony which controls “68% of the global market for high-end video gaming consoles.
“Sony has been the most vocal opponent of that deal, and the FTC has sided with Sony,” Harshbarger said. “Can you explain why?”
With all the FTC news today I'm surprised I hadn't seen anyone share that the rep. from Tennessee asked Khan directly about why they were siding with Sony as opposed to Microsoft in the Xbox vs PlayStation case. pic.twitter.com/PtGJ78Ku0p
— Destin (@DestinLegarie) April 19, 2023
FTC Chair Lina Khan responded by saying that the regulatory body finds feedback from the market players, big companies included, highly beneficial. She adds that the FTC’s attempt to block the merger is based on its independent assessment and is “based on the law and the facts.”
The FTC lawsuit is Microsoft’s biggest hurdle in its bid to acquire Call of Duty developer and publisher Activision Blizzard. The acquisition also includes King, one of the leading mobile game developers and makers of the video game Candy Crush.
Microsoft has a big week ahead of it as the UK CMA and EU Commission are set to finalize their rulings on the deal. The UK CMA has softened its stance on the merger in recent weeks, even suggesting that there is no significant reduction in competition should Microsoft withhold Call of Duty from its rival console.
Reports suggest that Microsoft will likely offer concessions to the EU Commission to get the ball rolling. According to reports, the EU may approve the deal as Microsoft has offered licensing deals with various consoles and platforms for the Call of Duty franchise. The tech giant has now shaken hands on deals to bring Call of Duty to Nintendo, Nvidia, Boosteroid, and EE.
Microsoft has also extended several offers to Sony for a ten-year licensing deal for the Call of Duty series. The licensing deal between Activision and Sony is set to expire next year.
Microsoft has until the middle of the year to complete the deal. If, for any reason, the deal is not completed by July 2023, Microsoft will be paying a hefty fine and will need to renegotiate the terms of the deal.
