Microsoft Responds To FTC’s Lawsuit

On December 22nd, Microsoft filed a response to the FTC’s recently filed antitrust lawsuit that would potentially block the company’s acquisition of Activision-Blizzard. In this filing, Microsoft said that this potential deal would not be harmful to competition in the gaming industry.

“Even with confidence in our case, we remain committed to creative solutions with regulators that will protect competition, consumers, and workers in the tech sector,” said Brad Smith, Microsoft’s President, in a statement provided to CNBC. “As we’ve learned from our lawsuits in the past, the door never closes on the opportunity to find an agreement that can benefit everyone.”

On December 8th, the FTC filed an antitrust lawsuit against Microsoft. This is the second major regulatory body looking to investigate and potentially block Microsoft’s acquisition of Activision-Blizzard. One month earlier, the European Commission launched an investigation into this potential deal.

This case will go before the Federal Trade Commissions’ law judge, Michael Chappell. However, Activision-Blizzard and Microsoft are both arguing that the FTC is violating the companies’ rights to due process under the fifth amendment of the United States.

At this time, the future of this deal remains up in the air. But, according to Microsoft’s head of gaming, Phil Spencer, the company will become the world’s third-biggest gaming organization if the acquisition is approved.

(All information was provided by CNBC, European Commission, and LinkedIn)

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