The US Federal Trade Commission’s (FTC) ongoing investigation of Microsoft’s proposed acquisition of Activision Blizzard has taken a new turn. The regulatory body has issued a subpoena to Nintendo’s Vice President of Publisher and Developer Relations, Steve Singer, for a 7-hour-long testimony regarding the licensing deal with Microsoft. Sony, a vocal critic of the purchase, has accused Microsoft of planning to withhold the Call of Duty franchise post-merger approval. In response, Microsoft has offered deals to several console and cloud gaming platforms.
What is the Subpoena About?
The FTC is reportedly seeking information from Singer about the licensing deal between Nintendo and Microsoft. The subpoena, issued well past the case’s deadline, has been challenged by Nintendo, which has asked the FTC judge to dismiss it. Lawyers for Nintendo argued that the request was submitted too late and is untimely, seeking to quash it. It is unclear what specific information the FTC is looking for, but it may be interested in why Sony has not accepted the deal and why Nintendo has.
What is the Current Status of the Subpoena?
The motion to quash the subpoena is still being reviewed by the FTC’s Chief Administrative Law Judge D. Michael Chappell. As of writing, no decision has been made on the motion. The FTC’s investigation into the licensing deal may suggest the regulatory body has a deeper interest in the proposed acquisition beyond competition laws violations cited in the lawsuit filed against Microsoft and Activision Blizzard.
What is the Microsoft-Activision Blizzard Acquisition?
Microsoft’s proposed acquisition of Activision Blizzard for $68.7 billion is set to be one of the largest acquisitions in the gaming industry’s history. Activision Blizzard is the publisher of several popular franchises, including Call of Duty, Candy Crush, and World of Warcraft. The acquisition will strengthen Microsoft’s position in the gaming industry, expanding its portfolio of exclusive games and franchises.
What are the Implications of the Acquisition?
The acquisition is expected to create ripple effects in the gaming industry, especially in the console wars between Sony and Microsoft. The merger will strengthen Microsoft’s position in the console market, and it may choose to withhold or release exclusive titles to other platforms as part of its business strategy. The regulatory hurdles faced by Microsoft in securing the acquisition’s approval suggest that the company may face increased scrutiny from regulators on the acquisition’s implications for competition in the gaming industry.
In conclusion, the subpoena issued to Nintendo’s Steve Singer suggests that the FTC has a deeper interest in the proposed acquisition beyond competition law violations cited in the lawsuit. The motion to quash the subpoena is still being reviewed, and it remains to be seen what specific information the FTC is looking for from Singer. The proposed acquisition’s approval is still uncertain, and it will be interesting to see how it unfolds in the coming weeks and months.
Frequently Asked Questions
Who are the parties involved in the Microsoft and Activision Blizzard acquisition?The parties involved in the proposed acquisition are Microsoft and Activision Blizzard.
What is the reason for the US FTC’s lawsuit against the parties involved in the acquisition?The US FTC filed a lawsuit citing violations of competition laws in the country in a bid to block the deal’s approval.
Who is the US competition regulator that issued a subpoena for Nintendo’s Steve Singer?The US competition regulator that issued a subpoena for Nintendo’s Steve Singer is the FTC (Federal Trade Commission).
What is Nintendo’s response to the subpoena?Nintendo has asked the FTC judge to dismiss the subpoena on the Microsoft and Activision Blizzard merger, submitting a motion to quash the FTC’s “untimely” subpoena. The motion to quash is still being reviewed by the FTC’s Chief Administrative Law Judge D. Michael Chappell, and no decision has been made as of writing.