Does FTC’s case against Microsoft have ANY MERIT? | Activision Blizzard Acquisition
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FTC has blocked Microsoft’s acquisition of Activision Blizzard of $69 Billion by filing an antirturst lawsuit against Microsoft. I believe we need to see the background of this development to understand it better. First of all we’ve talked about the FTC chairman and her previous stand pertaining to issues like this in the past. I’ve enumerated in this video how FTC chair’s stand on competition and monopoly doesn’t seem fair towards Microsoft. Microsoft activision news is full of speculations but the real reasons behind this whole fiasco might leave us with valuable business lessons.
After discussing about FTC chairperson’s point of view, I’ve talked about the exclusivity factor and where Microsoft stands in the competition for gaming business. These two points will clear for you that Microsoft is actually benefittiiing costumers by offering their Xbox subscriptions. Besides as for the exclusivity factor, Sony has many times more exclusive games than Microsoft. I personally think that the case is in favor of Microsoft but it will be a long drawn battle just like all other legal battles.
Microsoft and Activision both might now have the patience to see it through. Which is why this deal looks like falling apart. Microsft Activision Blizzard deal has got much more scrutiny and close looks from the regulators than any other deal in the recent past. This looks like a case where Sony is being favored over Microsoft. But as students of Business we can learn important lessons from this deal. COD becoming an exclusive or not isn’t a big deal until Microsoft keeps the prices of games low and provides them to everyone via its Xbox subscription model.
Microsoft Activision Blizzard acquisition might or might not fall through but such regulatory practices need to be analyzed. Hope you found the video valuable. Please share your opinion about the present scenario in the comments.
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Chapters
0:00 - Intro
1:10 - Background of Microsoft Activision Acquisition
1:45 - FTC Chariperson’s past stand on Antiturst
4:01 - 1st Problem with FTC antitrust lawsuit against Microsoft
4:38 - 2nd Problem - Exclusivity Factor
5:18 - 3rd Problem - Where is the competition?
6:17 - How Microsoft is benefiting Customers
7:09 - Recap of all points
7:40 - Outro