Virtual Legality

Virtual Legality is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).

Xbox, Activision, FTC, CMA: What Happens Next? (VL763)

E763 • Jul 14, 2023 • 53 mins

In this episode, Richard Hoeg delves into the FTC vs MSABK case, with a focus on antitrust laws and relevant cases. He examines the court's burden in merger cases, the FTC's stance, and the relevance of the Brown Shoe case. The conversation continues on FTC's challenges in proving merger legality doubts, their claims of court errors, and the potential harm to consumers post-merger. The episode also covers Microsoft's response, media misinterpretations, and potential settlements with UK's CMA.

Key Points

The FTC's appeal of the district court's decision to deny a preliminary injunction against the Microsoft-Activision merger is based on the argument that the court applied the wrong legal standard and failed to consider the FTC's evidence on the anti-competitive effects of the merger.
Microsoft has countered the FTC's appeal by arguing that the FTC's emergency request is a result of their own delayed action and that the district court's decision should be upheld due to deferential appellate review.
Simultaneously, Microsoft is reportedly in discussions with the UK's Competition Markets Authority to modify the transaction, potentially through a small divestiture, in order to address the CMA's concerns and proceed with the merger.

Speakers

Richard Hoeg

Host • 100%

Chapters

0:00	Introduction and Recap of the FTC vs MSABK case
8:03	Deep Dive into Antitrust Law and Relevant Cases
15:16	Examination of the Court's Burden in Merger Cases and FTC's Stance
18:43	Relevance of Brown Shoe Case in Establishing Antitrust Harm and Understanding Tying Contracts
24:46	Continuation on FTC's Uphill Battle in Proving Doubts about Merger's Legality
32:20	FTC's Claim on Court's Errors and Misapplications of Law
37:34	FTC's Arguments on Immediate Harm to Consumers and the Market Post-Merger
40:44	Microsoft's Response to FTC's Claims and Consequences of TRO Expiring
44:03	Media's Misinterpretation of the FTC's Appeal and Microsoft's Discussions with UK's CMA
49:20	Potential Settlement between Microsoft and CMA and Explanation of Nasdaq Indexes
52:19	Acknowledgement of Support and Closing Remarks

Transcript

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