Microsoft connected Thursday filed its response to U.S. regulators' antitrust lawsuit attempting to artifact the bundle shaper from buying video-game steadfast Activision Blizzard, saying that the woody volition not harm competition.

The Federal Trade Commission's challenge to the projected $68.7 cardinal acquisition stands retired arsenic the biggest authorities pushback Microsoft has dealt with connected location turf since facing disconnected against the Justice Department 2 decades agone implicit the dominance of Windows successful the operating strategy market.

Under President Donald Trump, Google's umbrella institution Alphabet, Apple, Amazon and Facebook genitor Meta each faced inquiries from U.S. contention officials. That near Microsoft to spell astir its concern and proceed expanding with acquisitions done the predetermination of President Joe Biden, adjacent aft Biden's appointee, exertion professional Lina Khan, took over astatine the FTC. But past Microsoft revealed its plan to bargain Activision Blizzard. On Dec. 8 the FTC argued that the transaction would interruption national law.

"Even with assurance successful our case, we stay committed to originative solutions with regulators that volition support competition, consumers, and workers successful the tech sector," Brad Smith, Microsoft's president and vice chair, said successful a connection provided to CNBC. "As we've learned from our lawsuits successful the past, the doorway ne'er closes connected the accidental to find an statement that tin payment everyone."

To relieve authorities absorption to the deal, Microsoft has offered concessions.

In October Phil Spencer, CEO of Microsoft's gaming unit, said Microsoft had committed to bringing Activision Blizzard's Call of Duty games to Nintendo consoles for a decennary and keeping the games connected Valve's Steam crippled store. Microsoft has besides offered to motion a 10-year statement with Sony to merchandise Call of Duty games connected PlayStation consoles connected the aforesaid time they scope Microsoft Xbox consoles. "Sony refuses to deal," Microsoft said successful its filing.

Activision Blizzard has not made its caller games disposable done subscription services specified arsenic Microsoft's Game Pass, and the acquisition would marque playing Activision Blizzard's games much affordable, Microsoft said.

"The acquisition of a azygous crippled by the third-place console shaper cannot upend a highly competitory industry," Microsoft said successful its response. "That is peculiarly truthful erstwhile the shaper has made wide it volition not withhold the game. The information that Xbox's ascendant rival has frankincense acold refused to judge Xbox's connection does not warrant blocking a transaction that volition payment consumers."

Microsoft said that aft taking astir a twelvemonth to analyse the woody and examining millions of documents from Activision Blizzard and Microsoft, the FTC has not shown grounds that Microsoft is looking to yank the crippled bid from PlayStation. Ensuring the games volition beryllium wide disposable is bully for Microsoft's business, the institution said.

Outside the U.S., Brazil gave the OK for the woody to proceed, portion the United Kingdom has been scrutinizing it.

Microsoft pushed backmost connected the FTC's assertions.

For example, the FTC said successful its suit that Microsoft had promised the European Commission that it wouldn't person a information to forestall radical from playing games from ZeniMax, a crippled steadfast Microsoft acquired successful 2021, connected consoles different than the Xbox, but aft receiving support for the ZeniMax woody from the European Commission, the institution said it would beryllium making immoderate ZeniMax games exclusive.

"The European Commission agrees it was not misled, stating publically the time aft the ailment that Microsoft did not marque immoderate 'commitments' to the European Commission," Microsoft said, "nor did the European Commission 'rely connected immoderate statements made by Microsoft astir the aboriginal organisation strategy concerning ZeniMax's games.'"

Members of the nationalist sent much than 2,100 emails to the UK's Competition and Markets Authority successful effect to a statement from the bureau describing 3 ways the woody could lessen competition. Around 75% of the emails expressed enactment for the acquisition, the bureau said connected Wednesday.

If the woody does close, Microsoft would beryllium "the world's fig 3 gaming institution by revenue, down Tencent and Sony," Spencer said connected a league telephone connected the time of the woody announcement.

In the months since then, 2 groups of Activision Blizzard employees person voted to signifier unions. Microsoft has said it's committed to efforts that would marque it easier for employees to determine connected whether to articulation oregon commencement a union.

"There is nary sensible, morganatic crushed for our transaction to beryllium prevented from closing," Activision Blizzard CEO Bobby Kotick said successful a connection provided to CNBC. "Our manufacture has tremendous contention and fewer barriers to entry. We person seen much devices than ever earlier enabling players a wide scope of choices to play games. Engines and tools are freely disposable to developers ample and small. The breadth of organisation options for games has ne'er been much widespread. We believe we will prevail connected the merits of the case." 

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