No ‘substantive’ settlement talks with US FTC over Activision deal: attorney

There are no “substantive” settlement talks underway between US President Joe Biden’s administration and Microsoft to resolve a legal battle over the Xbox maker’s $69 billion bid (around Rs.5,71,900) for games maker Activision Blizzard, a Federal Trade Commission attorney said Tuesday.

That FTCwhich enforces antitrust laws, asked a judge in early December to block the transaction, arguing there would be Microsofts Xbox exclusive access to Activision games Nintendo Consoles and Sonys PlayStation outside in the cold.

FTC Attorney James Weingarten said in a brief pre-trial telephone hearing that there were no “substantive” settlement discussions between the two sides under way.

Microsoft argues that the deal would benefit players and gaming establishments alike and offers to sign a legally binding consent decree with the FTC to provide it call of Duty Games to rivals including Sony for a decade.

The case reflects the tough approach taken by US President Joe Biden’s administration to antitrust enforcement. But antitrust experts say the FTC faces an uphill battle to convince a judge to block the deal, as Microsoft made voluntary concessions to allay fears it could dominate the gaming market.

Michael Chappell, the FTC administrative judge, will rule on the deal after hearings scheduled for August 2023. Either side can then appeal to the same FTC commissioners who voted to appeal and then to a US Court of Appeals.

The deal is under scrutiny by the European Union, which has until March 23 to decide whether to approve or block the deal.

© Thomson Reuters 2023