© Reuters. FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
WASHINGTON (Reuters) – A judge has set Jan. 3 for the first pre-trial hearing in the Biden administration’s case against Microsoft (NASDAQ:) over its $69 billion bid to take over “Call of Duty” maker Activision Blizzard (NASDAQ:).
The Federal Trade Commission (FTC), which enforces antitrust law, asked a judge to block the transaction earlier this month, arguing that the merger would allow Microsoft’s Xbox to get exclusive access to Activision games, leaving Nintendo consoles and Sony (NYSE:)’s PlayStation out in the cold.
Microsoft has countered that the deal would benefit gamers and gaming companies alike, offering to sign a legally binding consent decree with the FTC to provide “Call of Duty” games to rivals including Sony for a decade.
Microsoft made the argument in a filing aimed at convincing a judge at the FTC to allow the deal to proceed.
The case is a sign of the administration of U.S. President Joe Biden taking a muscular approach to anti-trust enforcement. But antitrust experts say the FTC faces an uphill battle to convince a judge to block the deal, because of the voluntary concessions offered by Microsoft to allay fears it could dominate the gaming market.
