Easing concerns from the FTC and Sony, Microsoft signed a binding agreement with the latter to ensure that the Call of Duty franchise remains on PlayStation.
The tech giant’s initial announcement did not mention the duration of the commitment. However, Kari Perez, the head of global communications at Xbox, later confirmed that it’s a 10-year deal.
We look forward to a future where players globally have more choice to play their favorite games.Phil Spencer, Xbox Head
Ever since Microsoft announced its plans to acquire Activision Blizzard, the Federal Trade Commission has opposed the deal, arguing that the acquisition would hurt consumers or adversely affect competition in the market.
Microsoft won the ensuing legal battle on June 11, with a San Francisco court ruling in the tech giant’s favor and giving it the green light to go ahead with the deal.
Microsoft Promises to Ensure the Widespread Availability of the Game Franchise
Microsoft had already signed multi-year licensing agreements with several rivals, including Nintendo and Nvidia, after regulators around the world expressed their concerns about the acquisition deal.
Apart from the deal with Sony, Microsoft has also signed a 10-year contract agreement with Nintendo, contingent on the completion of the merger.
Retweeting Spencer’s tweet, Microsoft President Brad Smith assured that the tech giant is committed to addressing the concerns of the platform and game developers, consumers, and regulators.
He went on to add that the company will “remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before” even after the company crosses the finish line for the approval of the deal.
The FTC previously expressed strong concerns that Microsoft will have the incentive to shut out rivals such as Sony Group from being able to offer Call of Duty games on their franchises.
This, they argued, would limit consumer choice and hinder competition. However, following the 5-day court trial, Judge Jacqueline Scott Corley ruled that the FTC had failed to back up its concerns appropriately.
The Battle Over the Microsoft-Activision Blizzard Merger
With the signing of a deal between Microsoft and Sony, the bitter battle that started between the two companies last year finally came to an end.
Sony was among the biggest critics of Microsoft’s acquisition of Activision Blizzard. Hence, it makes sense that Microsoft would want to address the Sony Group’s concerns to overcome the opposition and close the deal.
Though Microsoft hopes to close the deal with Activision Blizzard by the July 18 deadline, there might be a small delay to allow the resolution of the UK situation.
Apart from the FTC, Microsoft also faced resistance from the UK’s regulatory body, the Competition and Markets Authority. EU regulators already approved the acquisition deal in May.
This immediately drew protest from the CMA, which had previously moved to block the deal in April. Following the San Francisco court ruling, both Microsoft and the CMA agreed to pause their legal battle and negotiate modifications to the deal to address the latter’s concerns.
The CMA recently warned that the discussions were still at an early stage and that Microsoft’s proposals may “lead to a new merger investigation“.
However, the regulator also issued a notice of extension for its overall investigation on the matter. This pushed back the date for the final order by over a month, from July 18th to August 29th.
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