Microsoft has rejected claims that the Federal Trade Commission violates the US Constitution and admits it was wrong.
According to a report by Axios, the new presentation still maintains the central argument of the previous version: that Microsoft’s purchase of Activision Blizzard would not stifle competition. However, it removed a five-bullet section that says the FTC’s structure and internal administrative tribunal violate the Constitution, the separation of powers, and the due process clause of the Fifth Amendment.
A Microsoft representative told Axios that “the FTC has an important mission to protect competition and consumers, and we quickly updated our response to omit language that suggests otherwise under the Constitution. Initially, we put all potential arguments on the table internally and should have removed them. these defenses before presenting them. We welcome feedback on these defenses and are reaching out directly to those who have raised concerns to clarify our position.”
Activision also withdrew the same allegations in its response to the case. In November, the Supreme Court heard a separate case suggesting the FTC violates the Constitution; No ruling has been issued so far.
The FTC sued Microsoft in December 2022 in an attempt to block the acquisition of Activision Blizzard. The first preliminary hearing took place on 3 January. The process itself is expected to begin in August 2023. Microsoft has yet to enter substantive talks with the FTC. Such arguments are inevitable, as you’d rather settle the case before it goes to trial.
Source: https://www.gamespot.com/articles/microsoft-admits-mistake-removes-inflammatory-ftc-lawsuit-claim/1100-6510380/?ftag=CAD-01-10abi2f
