Google, Nvidia, and Sony join forces to put an end to Microsoft's Activision deal
Google, Nvidia Corp, and Sony have all filed regulatory complaints
against Microsoft’s $69 billion acquisition of Activision.
According to a recent update, Google LLC and Nvidia Corporation
have complained to the Federal Trade Commission (FTC)
regarding Microsoft Corporation’s plans to acquire Activision
Blizzard Inc. for a price of $68.7 billion.
The organizations voiced their concerns about the deal alongside
Sony Group Corporation, and the FTC filed a lawsuit to stop
Microsoft’s planned takeover in December.
Google, Nvidia, and Sony Join Forces to Stop Microsoft's Perceived Unfair Advantage
The move was made by the powerhouse group in conjunction
with FTC, as they feared Microsoft’s acquisition of Activision would
more or less kill the highly competitive nature of the video game
the market as it stands.
The commission has decided to hold an internal trial scheduled for
August. During the FTC trial, both Google LLC and Nvidia
The corporation could be asked to stand-in as important witnesses.
According to some sources, who asked not to be named because
the process is expected to be held in privacy – Google and Nvidia
gave facts and evidence that support the Federal Trade
Commission’s argument — that Microsoft might obtain an unfair
advantage in the market for cloud, subscription, and mobile
gaming.
Although Nvidia didn’t express a direct objection to the acquisition
in its comments to the FTC, it did emphasize the need for fair and
open access to game titles.
Microsoft would own Xbox Console, Minecraft and Halo In Activision Acquisition
The Xbox console, the Halo series, and the Minecraft
world-building software are just a few of the popular games that
Microsoft is acquiring through its Activision deal, which was first
announced almost a year ago.
Regulators worry, however, that Microsoft might make it more
difficult for competing platforms to obtain unrestricted access to
Activision’s most well-known games
Both Google and Nvidia are significant players in the market.
Gamers’ favorite graphics card manufacturer, Nvidia, also runs the
GeForce Now streaming service. In the cloud computing services
market, Google also competes with Microsoft.
Millions of people use Google’s Android mobile operating system
to play video games. Sony has said in the past that the Activision
agreement hurts competition because its PlayStation console
competes with Microsoft’s Xbox.
Microsoft Responds to Criticism
Microsoft stated that it is willing to address any issues raised by the
deal. It agreed to release future iterations of the game on Valve
Corp.’s Steam platform at the same time as they launch on Xbox in
a 10-year deal to bring Activision’s Call of Duty to Nintendo Co.
gaming consoles.
According to David Cuddy, a Microsoft spokesman, “We are ready
to address and have been proactively addressing issues raised by
regulators or competitors. We want more people to be able to
play games rather than restricting access to them.”
However, the criticism strengthens the case that Microsoft could
tie more premium content to its Xbox Game Pass service, which
already dominates the gaming subscription market. Microsoft has
argued in defense of itself that regulators are placing too much
emphasis on the issues brought up by Sony.
Sony has publicly criticized the transaction and claimed in
regulatory filings with Brazilian and UK authorities that it will harm
competition and give Microsoft an unbeatable advantage in the
emerging cloud gaming market.
In its own filings, Microsoft said that Sony’s worries are
“self-serving” and overstate the importance of Activision’s back
catalog.
The industry leader in software has also tried to compromise. It
made Sony a 10-year offer in exchange for access to Call of Duty on
the PlayStation console. The right to include the games on Sony’s
subscription services was also part of the offer, according to a
person familiar with those discussions. Whatever the outcome of
the FTC hearing in August would be, you can be sure that Games
News would be on hand to provide updates on the proceedings
leading to and after the trial.
