The FTC is currently suing Microsoft over its proposed $68.7 billion merger with Activision Blizzard in an attempt to block the deal.
Microsoft, predictably, was not thrilled with this decision and responded to the FTC’s lawsuit by claiming that the entire agency violates Article II (among others) of the US Constitution and the separation of powers. The Xbox maker also described the FTC’s lawsuit as “void” as a result of this alleged violation.
Now, as reported by Axios, the company has vehemently pushed back and argued that the FTC actually has an “important mission to protect competition and consumers.”
In a revised court filing filed on January 4, 2023, the console maker continued to advocate for the purchase of Activision Blizzard, but notably removed a series of statements that argued that the FTC’s structure as an “independent agency that possesses significant power” flew in the face of the constitution.
These claims were made in Microsoft’s original filing (an excerpt of which can be seen below), which was filed on December 22, 2022.
Speaking to Axios about the change of heart, Microsoft public affairs spokesman David Cuddy said the company should not have made these claims in the first place.
“The FTC has an important mission to protect competition and consumers, and we quickly updated our response to omit language suggesting otherwise based on the Constitution,” Cuddy said.
“We initially put all potential arguments on the table internally and had to waive those defenses before filing. We appreciate feedback on these protections and are engaging directly with those who have raised concerns to clarify our position.”
Activision Blizzard also amended its own response to the FTC lawsuit to remove these same allegations.
Microsoft is currently trying to help its Activision Blizzard deal with clear regulatory hurdles in multiple countries, but is facing some resistance. For example, Britain’s competition regulator the CMA is also investigating the deal over concerns it could harm rivals, and explained earlier this week that it wanted more time to assess the situation and publish its findings.
Add Comment