Microsoft Reportedly Avoiding a Settlement With FTC Following Pre-Trial Proceedings

Yesterday, a telephone hearing served as the pre-trial for the FTC’s case seeking to stop Microsoft’s acquisition of Activision. There weren’t many specifics to report on because this was simply a pre-trial, but Microsoft did make one thing crystal clear: It is not seeking a resolution. 

According to FTC lawyer James Weingarten, quoted by Reuters, no “substantive” settlement discussions took place during the call. This could imply that Microsoft isn’t seeking a complete settlement or wasn’t particularly interested in engaging in settlement discussions at this point in the trial. In any case, the tech behemoth is still undeterred in its pursuit of the Call of Duty developer. 

Microsoft Lawyers Claim They Are Unaware of COD’s Release Date

This is a brave stance to adopt because, in an official statement to the FTC, Microsoft’s attorneys claimed they were unaware of the release date of the original Call of Duty. It was unexpected that it was written in an official document, but mistakes like these can lead people to question Microsoft’s due diligence procedures, particularly in light of the company’s plans to invest up to $70 billion.

The FTC filed a lawsuit against Microsoft in December 2022, asserting that this merger’s effects would impact Sony and Nintendo. Microsoft’s problems are made worse because the EU is also looking into this transaction more closely and will likely render a decision on March 23, 2023

The exclusivity of Call of Duty is what Sony is most worried about since it will influence console purchases. Sony has yet to respond to Microsoft’s offer to keep the game on the PlayStation for ten years after it rejected the earlier three-year deal. According to reports, SIE’s Jim Ryan traveled to Europe to persuade the EU to oppose this arrangement.

Even though it seems like Microsoft’s chances are slim, the agreement has received some support from Saudi Arabia, Brazil, and even Meta. Given these arguments and the accommodations it has made to rival businesses, the FTC’s lawsuit will likely become complex and take some time to resolve.

ABOUT THE AUTHOR

Muhammad Zuhair


Passionate about technology and gaming content, Zuhair focuses on analysing information and then presenting it to the audience.
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