Thoughts Unboxed

  The Competition and Market Authority (CMA) of the UK may be changing its position on Microsoft's acquisition of Activision-Blizzard. The authority has expressed openness to reconsidering its decision to block the merger if Microsoft can address the concerns raised in CMA's final report. CMA was the first antitrust authority to block the merger, citing concerns about the potential impact on the future of cloud gaming. Microsoft has challenged this decision, and a hearing is scheduled for July 28. However, Microsoft, Activision, and CMA have agreed to pause the litigation in the UK. This pause will allow the three parties to work on a satisfactory restructuring of the transaction. CMA's change in stance follows the FTC's loss of a motion for a preliminary injunction against Microsoft's acquisition of Activision-Blizzard. Brad Smith, Microsoft's representative, responded to the decision, saying: After today's court decision in the U.S., our focus now turns ba...

Day 1 - June 22nd, 2023 Highlights The first day of the FTC v. Microsoft hearing sparked a heated battle between two gaming giants: PlayStation and Xbox. As the case unfolded, it became apparent that the FTC, seemingly donning the mantle of Sony, the unrivaled leader in the gaming world, was pitted against Microsoft's Xbox, a brand still striving to recover from the infamous Xbox One fiasco nearly a decade ago. FTC's Opening Statement According to James Weingarten, the counsel for the FTC, Activision is responsible for developing some of the most significant video games in the United States, including popular titles like Call of Duty, Diablo, and Overwatch. Weingarten emphasizes that both Microsoft and its competitors require high-quality content, referred to as triple-A, for their gaming consoles. As a result, they not only license Activision's content but also pay a premium for it. Weingarten further asserts that the evidence to be presented by the FTC in the coming days ...

In the cutthroat world of business, companies often aim to strike their rivals where it hurts the most. As Microsoft faces challenges in gaining approval for its acquisition of Activision-Blizzard, Google saw an opportune moment to deliver a potential knockout punch to Microsoft's Azure division, a direct competitor to its own Google Cloud division. Background In March 2022, the Federal Trade Commission (FTC) called for businesses to provide input on the business practices of major cloud providers such as Google Cloud, Microsoft Azure, and Amazon AWS. Recently, Google responded to this call by leveling accusations against Microsoft and Oracle, alleging unfair practices in the cloud industry, CNBC reports. Google's Complaint Against Microsoft Within its complaint, Google specifically targeted Microsoft, claiming that the company, through its dominant Windows Server and Microsoft Office products, creates barriers for clients to explore alternatives to its Azure cloud infrastruct...

  Another day, another Microsoft news to hit the wire. After an expected yet surprising victory in EU over Activation-Blizzard acquisition, Microsoft hits another road. This time surrounding its Cloud Business - Azure. According to a Bloomberg report , EU's antitrust watchdog has opened an informal probe into Microsoft's Azure Cloud Platform over anti-competitive practices.  It should be clarified that this probe has nothing to do with the recently concluded EU's probe into Microsoft's proposed Activision-Blizzard acquisition. Customers and competitors contacted by the EC have until May 16th to respond and have been asked to submit any non-confidential evidence of Microsoft’s abuses. This, Bloomberg says, indicates that the EC is close to announcing a formal investigation.  According to EC: The commission has received several complaints regarding Microsoft, including in relation to its product Azure, which we are assessing ba...