Microsoft Accuses Sony of Lying to the European Union Regulator about its Activision Deal

Microsoft claims that Sony lied to the EU regulator about its Activision deal. Despite the producer of PlayStation’s instance that its platform will continue to have Call of Duty game, Microsoft said Sony suggested otherwise. The software giant’s prearranged $69b purchase of Activision Blizzard keeps attracting comprehensive regulatory scrutiny. Microsoft claimed Sony lied to the EU about its intention for Call of Duty.

Activision Blizzard Deal

The news spreads as the European Union reportedly intends to serve the software giant an antitrust warning about the Activision Deal. Microsoft had publicly confirmed that it would keep the Call of Duty – the entertainment franchise on PlayStation after the merger concluded. But it recently said Sony suggested otherwise to Brussels officials. 

Frank X. Shaw, Corporate Vice President of Communication at Microsoft, noted that he heard Song briefing the public in Brussels, where it claimed, Microsoft was unwilling to offer then parity for the franchise if it acquired Activision. Nobody can take the truth away.

Microsoft has been optimistic about what it has offered Sony. It is a 10-year deal that the company gives PlayStation producer parity on content, features, quality, timing, and other elements of the game. Frank said the company has confirmed that it is pleased to make this enforceable through an agreement, regulatory contracts, and other options.  

Call of Duty 

Call of Duty is one of the world’s most significant entertainment franchises. It is a series frequently home to many players and millions of dollars in sales. Microsoft provided Sony with some terms to let the franchise remain on PlayStation for three years after the completion of the Activision Blizzard acquisition, which according to Jim Ryan – the CEO, is inadequate. 

Microsoft subsequently offered PlayStation producer a 10-year deal after the two companies reportedly met to discuss particulars. While the result of these talks is unknown, the agreement seemingly does not reach the desired outcome.

The software giant keeps asserting that it does not plan to make Call of Duty exclusive to its Xbox consoles. Phil Spencer, the Gaming CEO of Microsoft, states that the company wants to acquire Activision Blizzard for its dominant mobile gaming position. Microsoft wants to be next to players, especially with the franchises of Call of Duty and Minecraft.

According to Brad Smith – Microsoft President, it would be economically irrational to make Call of Duty because the franchise’s revenue is a significant part of Activision Blizzard, which comes by selling PlayStation games. 

Shaw reiterated these arguments in his comments, saying Sony serves as the leader in the console market and would challenge business sense for the company to exclude PlayStation gamers from the franchise’s ecosystem. The company aims to bring Call of Duty and other games as it did with Minecraft to more players worldwide, allowing them to enjoy the games where they want.

Regulars will decide about the merger in March as the UK’s CMA plans to share a preliminary decision in February. The European Union and Competition & Markets Authority will deliver their final verdicts on 11 April and 26 April 2023, respectively.

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