Microsoft President Brad Smith announced on Tuesday that the company has proposed a legally-binding consent decree to the US Federal Trade Commission (FTC). This decree would ensure that rivals, including Sony and others, have access to Call of Duty games for a period of ten years. The offer comes as Microsoft seeks approval for its monumental $69 billion takeover bid for video game publisher Activision Blizzard.
In January 2022, Microsoft, the owner of the Xbox console and game network platform, revealed its plan to acquire Activision for an impressive $68.7 billion. This deal is considered the largest in the history of the gaming industry.
Sony, the maker of the PlayStation console, has raised concerns about the deal. They have called attention to Microsoft’s control over games like the highly popular Call of Duty series.
As of now, there has been no response from the FTC or Activision Blizzard regarding these recent developments.
In an effort to address the criticism, Microsoft recently made a significant move by committing to bringing Call of Duty to Nintendo platforms over the next decade. They have also extended the same offer to Sony.
Earlier this month, the Biden administration intervened to block Microsoft’s bid for Activision, creating an obstacle for the tech giant’s ambitious plans to expand its gaming portfolio and catch up to larger competitors.
The deal is also facing scrutiny outside of the United States. In November, the European Union launched a comprehensive investigation into the matter. The EU competition watchdog will make a decision on whether to approve or reject the deal by March 23, 2023.
The UK’s antitrust regulator announced in September that it would conduct a full-scale probe as well.
According to sources familiar with the situation, Microsoft is expected to offer remedies to EU antitrust regulators in the coming weeks to address any concerns and avoid formal objections to the deal. The deadline for the European Commission to present a formal list of competition concerns, known as a statement of objection, is in January.
Without Activision and its diverse range of games across mobile, console, and PC platforms, Microsoft could face challenges in attracting users to its subscription service for accessing games. As traditional sources of growth, such as ad sales, become less reliable, attracting subscribers has become a top priority for major tech companies.
© Thomson Reuters 2022
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
