The Xbox manufacturer apparently refuses to provide the FTC with internal records after Microsoft requested that Sony disclose contracts.
Microsoft is attempting to persuade regulatory authorities with several transactions that the exclusive strategy following the acquisition of Bethesda cannot be extended until the acquisition of Activision Blizzard. The American Federal Trade Commission (FTC) is less impressed by the argument.
Instead, examiners complain about the inability to provide the relevant documents: Even after 24 requests According to the FTC Legal Department, Microsoft apparently refuses to provide the requested documents, even if the requests are specific.
Microsoft claims that the requested documents are "too extensive and time-consuming." It also claimed that some of the data contained therein was "copycat" of previous documents.
The Xbox provider has already been given more time for the disclosure and examination phase.
The Federal Trade Commission is interested in 10-year agreements.
The Federal Trade Commission (FTC) wants to see certain documents related to Microsoft's 10-year agreements with Nintendo and NVIDIA. Boosteroid and Ubitus, cloud-based gaming service providers, have recently signed additional 10-year agreements that might have sparked interest from the Federal Trade Commission.
According to the FTC's letter, Microsoft intends to defend these agreements, but it has refused to provide the necessary internal papers related to these agreements or communications with third parties other than Nvidia, Nintendo, and Sony.
According to the auditors, Microsoft should not be permitted to invoke or use these agreements in its arguments without providing the required and supporting documentation. Sony, for example, has repeatedly emphasized that Microsoft's offer is inadequate and might disadvantage PlayStation players.
There are rumors that 150 million more Call of Duty players are on the way.
Microsoft appears to be relying on affiliations with Nintendo, Nvidia, and streaming providers as a validator for the agreement. In a public offering, the company claims that "Call of Duty" may be extended to more than 150 million additional players after the acquisition.
The Federal Trade Commission (FTC) continues to require the release of "all documents related to Microsoft's acquisition of ZeniMax and the acquisition of Activision."
Microsoft's exclusive strategy following the acquisition of Zenimax, the parent company behind Bethesda, might fall on Redmond's feet. Games such as "Starfield" quickly became exclusive projects, and "The Elder Scrolls 6" seems to be facing the same fate.
Documents on the next-generation gaming environment
Another item on the FTC's request is "Documents related to [geschwärzt], the codename for the next-generation gaming ecosystem". What exactly is that initially understood, though? It may be Microsoft's console plans, a new gaming service, or the future cloud gaming plans.
Activision Blizzard should disclose information that were not previously disclosed during the design stage. These include insights on consumers' buying decisions, as well as documents related to the alleged cannibalization of purchased games (buy-to-play) by subscription services.
Activision Blizzard itself seems to be adamant about the Xbox Game Pass. Currently there are no plans to include "Diablo 4" in the subscription system.
What follows the inspection period? The inspection period ends on April 7, 2023, before the case goes to court on August 2, 2023. However, Microsoft may fail to disclose the exclusive plans as quickly as possible.
The fact that Sony was subpoenaed by Microsoft to participate in the proceedings is particularly revealing to Microsoft. Get access to Microsoft's own business practices.
The Federal Trade Commission (FTC) recognizes weaknesses in Microsoft's approach: "In this legal dispute, Microsoft practic acknowledged the relevance of this issue when it requested documents from a third party." Microsoft's other contention is that it may request relevant documents from a third party while avoiding similar disclosure of its own files.
More info on the subject:
Microsoft wants to purchase Activision Blizzard for $69 billion. The deal is expected to close this year.
More info on Activision Blizzard
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