The Biden administration’s lawsuit against Microsoft (MSFT.O) over its $69 billion offer to acquire “Call of Duty” maker Activision Blizzard has been set for its first pre-trial hearing on January 3 by a judge (ATVI.O).
The merger would give Microsoft’s Xbox exclusive access to Activision games, leaving Nintendo consoles and Sony’s PlayStation out in the cold, according to the Federal Trade Commission (FTC), which enforces antitrust law.
Microsoft has argued that the agreement would be advantageous for both gamers and gaming companies and has offered to sign a legally binding consent decree with the FTC in order to provide “Call of Duty” games to rivals like Sony (6758.T) for a decade.
Microsoft presented this justification in a document intended to persuade an FTC judge to approve the deal.
The case is evidence of US President Joe Biden’s administration’s tough stance on antitrust enforcement. The voluntary concessions made by Microsoft to allay concerns that it might monopolize the gaming market, according to antitrust experts, make it difficult for the FTC to persuade a judge to block the deal.