Microsoft responds to complaints against Activision deal, says it will benefit the industry

A day after Microsoft was sued by video gamers in America over the Activision deal, the Xbox maker clarified that the $69 billion deal would only benefit the gaming community.

On Thursday, Microsoft made the argument in a filing aimed at convincing a judge at the US Federal Trade Commission to allow the deal to proceed as the deal with Activision is meant to benefit the gamers and rival companies.

Microsoft was responding to a complaint by the FTC commissioners who believe the merger would hamper competition in the gaming industry, they said in a complaint this month aimed at blocking the deal.

According to a complaint filed on December 8, the FTC said its concern was that Activision's popular games, including "World of Warcraft" and "Diablo," potentially would stop being offered on devices that rival Microsoft's Xbox. It set a hearing before an administrative law judge for August 2023.

A separate lawsuit has been filed against Microsoft by a community of gamers in California, New Mexico, and New Jersey.

The gamers believe that the proposed acquisition would give Microsoft "far-outsized market power in the video game industry". "With the ability to foreclose rivals, limit output, reduce consumer choice, raise prices, and further inhibit competition," it added.

"As the video game industry continues to grow and evolve, it's critical that we protect the market from monopolistic mergers that will harm consumers in the long run," said plaintiffs' attorney Joseph Saveri in San Francisco in a statement.

Microsoft, however, has been offering remedies and solutions. The company has reportedly offered to discuss a 10-year licensing deal with Sony amid doubts of Activision's marquee 'Call of Duty' franchise would be taken off from Sony's Play Station.

The company has also signed an extensive agreement with Nintendo to bring the games to its platform.

Also Read: Microsoft gets sued by American video gamers to stop Activision acquisition