Microsoft is intent to acquire Activision-Blizzard and it now issued its counter to the Federal Trade Commission's initial blocking of the deal to push through. The software company from Washington claims that it is not that large of a company, being a "third-place console manufacturer" next to industry giants.
Xbox had a solution to this case of "anti-competition" remarks against Microsoft, and it is to offer Sony's PlayStation a 10-year contract to get "Call of Duty" at the same time as its release date.
Microsoft Appeals to the FTC about Activision-Blizzard Deal
(Photo : Image via Microsoft)
A filed counter-response by Microsoft made its way to the FTC regarding the Activision-Blizzard deal, after the regulatory agency initially blocked the deal with an antitrust case in this acquisition.
According to CNBC, Microsoft claimed that its purchase would not harm the competition there is in the market.
"The acquisition of a single game by the third-place console manufacturer cannot upend a highly competitive industry," Microsoft said in the filing. "That is particularly so when the manufacturer has made clear it will not withhold the game. The fact that Xbox's dominant competitor has thus far refused to accept Xbox's proposal does not justify blocking a transaction that will benefit consumers."
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Xbox Offered PlayStation 'Call of Duty' Games
(Photo : Microsoft)
In addition to this, Microsoft claimed (via the Wall Street Journal) that Xbox previously offered Sony's PlayStation a 10-year contract to receive "Call of Duty" releases at the same time as its console.
The software company claimed that Sony rejected this deal, and used this in its argument that it is not violating federal laws and anti-competition.
Microsoft and Activision Blizzard Acquisition
Microsoft faced the FTC wrath on their purchase and acquisition of Activision-Blizzard in the present, particularly as this massive deal is set to endanger competition should it push through. However, Microsoft is not backing down from this fight, and despite being part of Big Tech, it will use its "underdog" status compared to industry giants.
The investigation started earlier this year after completing the $68.7 billion purchase of the massive American gaming company, raising eyebrows at the FTC.
There were fears that this purchase would be blocked by the FTC, especially with its stricter implementation of the country's rules and laws regarding antitrust.
And for a long time now, the acquisition cannot be completed without this case closing the books and allowing Microsoft and Activision Blizzard to go their merry ways.
Still, the Redmond software giant is not backing down from this fight and will continue to push their case as an underdog in the console and gaming industry. It revealed that the company offered its rival, the PlayStation a chance to secure "Call of Duty" for every release, something which the Japanese company declined, leaving the Microsoft deal in a bind.
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