Microsoft Promises Openness As It Seeks Approval for Activision Deal

FEB 9 2022·Updated FEB 10 2022

Story

Image credit: iStock [via Washington Post]

The Facts

Microsoft has begun a charm offensive to try and quell the concerns of antitrust regulators ahead of its proposed acquistion of video game-maker Activision Blizzard.
nytimes
The $70 billion deal -- the largest in both the company's and the gaming industry's history -- would potentially give Microsoft a monopoly over the distribution of some of the most popular video games.
nytimes
The sheer size of the proposed deal eclipses recent acquisitions by Sony, which bought Bungie, and Take-Two Interactive, which is acquiring Zynga.
wapo
Consumer advocates fear that Microsoft may be moving towards a subscription service that might exclude titles produced by its competitors.
wapo
To address this, Microsoft announced a set of "Open App Store Principles" that they claim will ensure open access on their proprietary game marketplaces.
Axios

Sources Split

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RIGHT

ESTAB
CRIT

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ESTAB

The Spin

Narrative A

The merger faces strong headwinds now that Lena Khan, Biden's Federal Trade Commission Chair, is cracking down on vertical mergers designed to give large companies undue power by integrating levels of the supply chain. Microsoft will have to prove that isn't the case here.

nytimes

Narrative B

Microsoft is taking appropriate and proactive steps to avoid any suggestion that it's trying to amass monopoly power. The acquisition will benefit consumers by eventually allowing them to play games on any device and offering more choice.