A date was set for the first pre-trial hearing between Microsoft and the Federal Trade Commission (FTC). It will take place on January 3, according to Engadget.
Microsoft and FTC will face each other in court to decide the fate of the tech company's $69 billion bid to buy Call of Duty creator Activision Blizzard.
FTC Files a Case to Block the Acquisition Deal Between Microsoft and Activision
At the start of 2022, Microsoft and Activision announced the merger. At the time, the tech company also announced that the deal is expected to close no later than June 2023.
However, last month, FTC, which enforces antitrust law, asked a judge to block the acquisition deal between the two companies.
FTC argues that the merger would allow Microsoft's Xbox exclusive access to Activision's games, leaving Nintendo consoles and Sony's PlayStation behind.
But according to Microsoft, its acquisition deal with Activision would benefit both gamers and gaming companies.
To prove this, the tech company offered to sign a legally binding consent decree with the FTC. Under the decree, the company will provide Call of Duty games to rivals such as Sony for a decade.
The tech company made the argument in a filing in order to convince an FTC judge to allow the deal to proceed.
According to Reuters, antitrust experts says that the FTC may find it challenging to prove its claims in court.
In a WCCFTech report, Andre Barlow, an antitrust lawyer at Doyle, Barlow & Mazard PLLC, said that legal precedent is not on the side of the FTC.
Barlow added that at least three judges have accepted remedies being offered by the merging parties.
Roger Alford, a law teacher at the University of Notre Dame, also said that vertical merger challenges are really difficult to win. He added that it will be an "uphill battle" for the FTC.
The Microsoft-Activision case is a sign that the Biden administration is taking a stronger approach to enforcing its antitrust law.
FTC Will Face a Difficult Battle in Convincing a Judge of its Case's Merit
According to FTC director Holly Vedova "Microsoft has already shown that it can and will withhold content from its gaming rivals."
Vedova added that because of that, the commission seeks to stop Microsoft from gaining control over a leading independent game studio.
Likewise, it seeks to stop Microsoft from harming the competition in multiple dynamic and fast-growing gaming markets.
But the FTC is expected to face a difficult battle in trying to convince a judge of the merits of its case.
First, the tech company is not pushing for a horizontal merger where it would take one of its direct competitors out of the picture.
In addition, the company shows a willingness to make concessions in order for the deal to move forward.
In a legal filing last month, Microsoft wrote that "the commission cannot meet its burden of showing that the transaction would leave consumers worse off."
The company added that the transaction will allow consumers to play Activision's games on new platforms and access them in new and more affordable ways.
In addition to FTC's case, the deal is also facing regulatory scrutiny from the United Kingdom's Competition and Markets Authority.
Recently, the agency said it would conduct an in-depth investigation of the proposed merger.
Related Article: Microsoft Responds To FTC's Activision Blizzard Lawsuit
