Microsoft has decided to counter FTC’s lawsuit over Activision deal

Microsoft has until Thursday to answer to the FTC's lawsuit, which was lodged in the administrative court

Microsoft Corp. has indicated that it intends to contest the Federal Trade Commission's lawsuit seeking to halt its $75 billion acquisition of Activision Blizzard Inc. It is anticipated that it would make the case that it is an underdog in the video game development industry. Since Microsoft lags behind competitors in video game console sales and has a small presence in mobile game creation, the tech giant has been promoting its position for months, claiming that the acquisition wouldn't jeopardize industry competition. Furthermore, it was also stated that the company anticipates the market to become more competitive in the future as cloud gaming gains popularity. Legal experts predict that Microsoft will base its argument on these talking points as well as the fact that it is pursuing a vertical merger, which means it is acquiring a business that is a part of its supply chain rather than a direct rival.

Microsoft has until Thursday to answer to the FTC's lawsuit, which was lodged in the administrative court of the agency on December 8. The FTC said in its complaint that the agreement is unlawful because it would allow Microsoft to regulate consumer access to Activision games outside of the Redmond, Washington, company's own Xbox systems and subscription services. According to the FTC, the business might increase pricing, lower the quality of Activision's content, or even completely stop providing access to the developer's games to those who don't utilize its console.