While many believed that the fight between Microsoft and Sony over Call of Duty was with daytime contacts, the FTC has decided to extend the administrative process and this could make the result of the acquisition last longer. So news of the case is expected to continue over the next few weeks and months.
The back-and-forth of Microsoft’s latest big buyout and associated legal drama won’t go away any time soon, but another legal expert has weighed the matter.
The antimonopoly expert Douglas Melame seems extremely skeptical of the FTC’s strategy in trying to block Microsoft’s acquisition of Activision Blizzard. FTC chief Lina Khan has publicly stated the obstacles to approving the acquisition, which Melamed calls “insane.”
“I think it’s a little crazy,” says Melamed. “I think if you lose your lawsuits, the most likely inference Congress will make is that you brought bad lawsuits or you don’t know how to litigate.”
Lina Khan has racked up several defeats in court and this could damage her own reputation. Melamed speaks from a position of experience dealing with antitrust specifically with Microsoft, having served as the lead deputy assistant attorney general in the antitrust case brought against Microsoft in the 90s🇧🇷 The case was successful, although it was later partially overturned, with Microsoft reaching a settlement.
Another battle that the FTC is leading is with Meta (Facebook) which wants to block the purchase of the VR Fitness Within application, Amazon also won the court. The hour ball is Microsoft which has a deadline to turn the tables on until August 2023. Microsoft has repeatedly tried to allay concerns, signing a deal to bring Call of Duty to Nintendo for 10 years and pledging to do the same for Steam, while offering a deal with Sony for PlayStation consoles.
Microsoft has stepped up the pressure with labor deals, signing an agreement with Communication Workers of America (CWA) and pledging to remain neutral if Activision Blizzard employees decide to join the union within 60 days of the merger’s completion. That neutrality has since been extended to ZeniMax, the parent company of Xbox publisher Bethesda Softworks, which Microsoft acquired in March 2021. More than 300 Bethesda Softworks employees are merging, with a vote expected later this month.
That said, this doesn’t seem like a big case. We’ve already seen the European Commission correct the FTC when it said that Microsoft broke its promise by making Starfield and Redfall exclusive to the Xbox console. Add labor pressure, with the CWA and AFL-CIO unions seeking approval of the deal, and now with Lina the FTC has lost nearly every legal battle.
