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).
Microsoft, Xbox, and Activision Beat FTC | Judge: Perhaps bad for Sony. But good for gamers. (VL762)
In this episode, Richard Hoeg delves into the recent developments in the gaming industry, focusing on the FTC's case against Microsoft's deal with Activision. He examines gaming content access, distribution models, and the legal framework, including Section 7 of the Clayton Act and antitrust laws. The discussion also covers the controversy around Microsoft's acquisition of Activision, the financial implications, and an analysis of Microsoft's post-merger actions. The episode concludes with an interpretation of US antitrust laws, UK's CMA's stance on the merger, and future content plans.
Key Points
- The court found the FTC's arguments against the Microsoft-Activision merger wanting, particularly in demonstrating a likelihood of anti-competitive effects in the console, cloud, and subscription services markets.
- Contracts Microsoft entered into with various parties, including a commitment to keep Call of Duty on PlayStation for 10 years and to bring the game to Nintendo Switch, were significant in the court's decision to deny the FTC's motion for a preliminary injunction.
- The FTC's assertion that the merger's very nature and purpose were anti-competitive was rejected by the court, emphasizing that the merger was likely to increase consumer access to Call of Duty and other Activision content.
Chapters
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| 1:04:45 | |
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Transcript
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