Microsoft’s legal counsel has issued a response to the Federal Trade Commission’s lawsuit with a 37-page document that lays out Microsoft’s case for the legality of its purchase of Activision Blizzard. Among many of the arguments in the document,Microsoftaccuses the Federal Trade Commission of violating its constitutional rights, including its right to due process and neutral arbitration.
Microsoft’s bid to acquire Activision Blizzard could have a major impact on the gaming industry, as Activision Blizzard is responsible for some of the largest franchises in the industry includingWorld of WarcraftandCall of Duty.Call of Dutyhas long been one of the most popular franchises in the world, and one of the main concerns regarding the acquisition is that Microsoft would have the power to make the franchise an Xbox exclusive which would be a tremendous blow to Sony’s PlayStation. Xbox head Phil Spencer has stated that Microsoft has no intention of makingCall of Dutyexclusive, however, even saying that “Microsoft has entered into a 10-year commitment tobringCall of Dutyto Nintendo.”
RELATED:Microsoft Claims Sony Blocks Games from Coming to Xbox
In defense against theFTC’s attempt to block Microsoftfrom purchasing Activision Blizzard, the company’s legal counsel put together a lengthy document outlining its issues with the lawsuit. Numerous points accuse the FTC of violating Microsoft’s constitutional rights, with Microsoft stating that the proceedings “violate Microsoft’s right to procedural due process under the Due Process Clause of the Fifth Amendment” and violated Microsoft’s right to a neutral arbiter “because the Commission has prejudged the merits of the instant action.”
The FTC’s main concern is that Microsoft will have too much control within the industry particularly when it comes to theCall of Dutyfranchise. Microsoft believes that concern to be unfounded, arguing that “The acquisition of a single game by the third-place console manufacturer cannot upend a highly competitive industry.” Microsoft claims that a major motivation for the deal was to expand into the mobile market, stating that “Xbox wants to grow its presence in mobile gaming, and three-quarters of Activision’s gamers and more than a third of its revenues come from mobile offerings.”
Microsoft also pointed out how it would make no sense to pay billions in order to acquireCall of Dutyonly to then eliminate its PlayStation-based revenue stream. Additionally, the document mentions how Xbox has continued to support multiplatform games likeThe Elder Scrolls Online, understanding that it’s financially beneficial for multiplayer games to be as broadly accessible as possible.
The FTC has been looking closely at the gaming industry recently, bringing down a record$500 million penalty against Epic Gamesearlier this month due to violating children’s privacy laws and using predatory monetization practices that may have costFortniteplayers millions in unwanted purchases. The FTC also held an investigation into the issue of loot boxes which was prompted by the infamousStar Wars Battlefront 2loot box controversy in 2019. As the gaming industry continues to expand, regulatory bodies are paying more attention than ever.
MORE:The FTC Complaint About Microsoft’s Activision Blizzard Acquisition Ignores What Sony Already Does
