a new report from Bloomberg says Microsoft is ready if the Federal Trade Commission (FTC) files a lawsuit to block the proposed $69 billion Activision deal. Despite this, it is important to note that there is still no clear confirmation on whether the agency will push for such action as commissioners still need to vote.
According to the person who acted as the source BloombergThe FTC is now concluding its investigation, and its recommendation is expected to be issued “soon.” After that, the agency commissioners will decide whether to pursue the matter or not. Earlier, a deal reporter item (via looking for alpha) before revealed That an employee recommendation by the FTC could come in mid-December, while its decision on the deal is expected in January.
Despite the impending arrival of the FTC’s plans and actions, the source said the Redmond company still has not communicated with the FTC about possible concessions that would aid in approval of the deal. However, it is worth noting that recently reuters report good Microsoft says it may offer EU antitrust regulatory measures in the coming weeks. According to reuters, EU concessions will include a clause relating to a “10-year licensing deal for PlayStation owner Sony”. Meanwhile, according to deal reporter report goodMicrosoft and Sony held meetings to discuss matters related to PlayStation’s licensing deals for Activision games.
In November, The New York Times Too Expose That Microsoft offered to extend Sony’s PlayStation’s prior 3-year licensing deal to 10 years. BloombergThe source commented to today’s report that the two companies need to figure out certain financial terms for the agreement and that Microsoft has already informed European and UK regulators about the discussions. However, it was stressed that the company has still not come up with an actual remedy proposal as the review process is not at that stage yet. In the event of finalisation, the European Commission’s concession could be used before other antitrust watchdogs around the world. Bloomberg The report says that’s what Microsoft is hoping for, although the UK’s Competition and Markets Authority (CMA) may demand other actions. Still, it may be a different story for the FTC. as Bloomberg The states, even with an agreement proposed to ease concerns, “Biden’s antitrust enforcers are not fond of such agreements.”
This was first reported by the FTC about the potential for a lawsuit informed of By political man, which said the agency would “likely bring a case to its own internal administrative court.” Both companies need to close the proposed merger without renegotiating the agreement by July 2023, but an administrative lawsuit that will take time to resolve could prevent them from reaching the target month. However, an antitrust analyst at Bloomberg Intelligence said Microsoft could win the court battle.
One of the main concerns of regulators regarding the merger is Microsoft keeping Activision’s game away from its rivals if the deal closes. CMA can also be called back with citing a reference This Sony-related concern in its preliminary investigation findings. Even then, BloombergThe source said removing call of duty Wouldn’t be financially viable for Microsoft on PlayStation.
We will share more updates related to this news as the story develops.