Microsoft serves Sony a subpoena in preparation for impending FTC lawsuit
Suit up
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In a high-stakes legal move,Microsofthas servedSonyInteractive Entertainment with a subpoena as it prepares to defend itself in an impending antitrust lawsuit with the Federal Trade Commission (FTC).
For those not in the know, Microsoft is expecting to fight animminent legal battlewith the US government’s Federal Trade Commission on the grounds that itsacquisition of Activision Blizzardwould “suppress competitors” to an unlawful extent. A recent court filing, shared by Axios’ Stephen Totilo onTwitter, has revealed that Microsoft has now subpoenaed Sony in an effort to build a sturdy legal case to defend its interests.
A subpoena is a legal writ ordering an individual or corporation to either attend a court hearing or produce documentation in advance of that hearing. According to the court filing, Microsoft wants Sony to offer up details of PlayStation’s game production pipeline to help strengthen its case.
Suffice it to say, this kind of information is the sort of thing that Sony, most likely, would prefer to keep close to its chest. At the time of writing, Sony has until January 27 to respond to the subpoena. It could well opt to move to limit or quash the order in court, but whether or not this strategy will play out for the company remains to be seen.
Courting intrigue
In December 2022, the FTC announced its intention tosue Microsoftin an effort to prevent its $69 billion acquisition of ActivisionBlizzard. Sony previously expressedconcernthat the acquisition aims to make PlayStation a “less close and effective competitor to Xbox” by allowing Microsoft to be the “one-stop-shop for all the best-selling shooter franchises on console… [setting it] free from serious competitive pressure”.
In response to the FTC’s suit, Microsoft and Activisionclaimthat their merger, and specifically the acquisition of theCall of Dutyfranchise, “cannot upend a highly competitive industry”. “Giving consumers high-quality content in more ways and at lower prices is what the antitrust laws are supposed to promote, not prevent,” the response states. Microsoft has remained adamant that the acquisition is in thebest interest of gamersso it’s likely that this subpoena is designed to help the tech giant turn up evidence to support this particular argument.
This is hardly the first time in recent years that the FTC’s rulings have affected the video game industry. In December 2022, the regulatory body orderedEpic Gamesto not only pay a $275 million penalty for violating children’s privacy law but also to pay $245 million in refunds for users on the ground that they had been tricked “into making unwanted charges” (via FTC.gov).
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The FTC has also scrutinized the use of loot boxes in games, and famously published a paper on the subject back in 2020 which “highlights public concerns [about] loot box marketing techniques that may encourage players to overspend or mask the real costs to players through confusing terms or inadequate disclosures” (via FTC.gov).
Though it is early days, the result of the FTC’s lawsuit against Microsoft, as well as whether or not the latter’s subpoena of Sony is upheld in court, will doubtless have a significant effect on the financial landscape of the video games industry.
An editor and freelance journalist, Cat Bussell has been writing about video games for more than four years and, frankly, she’s developed a taste for it. As seen on TechRadar, Technopedia, The Gamer, Wargamer, and SUPERJUMP, Cat’s reviews, features, and guides are lovingly curated for your reading pleasure.
A Cambridge graduate, recovering bartender, and Cloud Strife enjoyer, Cat’s foremost mission is to bring you the best coverage she can, whether that’s through helpful guides, even-handed reviews, or thought-provoking features. She’s interviewed indie darlings, triple-A greats, and legendary voice actors, all to help you get closer to the action. When she’s not writing, Cat can be found sticking her neck into a fresh RPG or running yet another Dungeons & Dragons game.
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