Microsoft vs FTC: Highlights of the courtroom battle in the Microsoft-Activision deal

In an intense discussion between Microsoft attorney Beth Wilkinson and U.S. Federal Trade Commission's economist Robin Lee on Tuesday, the latter seemed to have struggled at times to plainly demonstrate how the Microsoft-Activision deal would hurt the gamers.

As the five-day long legal battle between Microsoft and US Federal Trade Commission continues in a San Francisco court, the top executives of Microsoft and Activision/Blizzard are trying their best to save the $68.7 billion merger of the two companies.

Till now, the transaction for the deal is temporarily at halt, as the US FTC has asked a federal judge to stop the transaction for a while to allow the agency's in-house judge to decide if it can go forward. Most often, the side that losses in federal court often concedes and the in-house process does not go forward. 

Microsoft's criticism against US FTC 

An attorney of Microsoft constantly questioned Lee over his analyses of the impact of the deal on other gamers and on the gaming industry. He questioned Lee of the details of his analyses of potential market share gains for the Redmond, Washington-based company’s Xbox division, reported Reuters. He questioned the details of the analysis which presented the impact on gamers who would migrate due to the wildly popular "Call of Duty" video-game which is made by Activision.

In the hearing, lee acknowledged that his analyses of the deal focused on how the full exclusivity of “Call of Duty” on Xbox will impact the industry. He made it clear that his analyses did not presented what would happen if the game was available on Nintendo's Switch. 

In its counter, Microsoft made it clear that if the deal goes through, Microsoft pledged to provide the game to Switch for 10 years.

US FTC's economist struggled in answering Microsoft's attorney's pressing questions

During the courtroom hearing, Microsoft attorney Beth Wilkinson pressed Lee in an effort to poke holes in his analysis of the deal. He gave several arguments pointing out limitations of his economic modeling. At one point, Robin Lee's silence and inability to answer the questions, made Beth Wilkinson's testy. “Professor Lee, can you answer my question?” asked Wilkinson impatiently on a fine detail of his reports.

Frustrated with difficulty in getting answers from Lee, Wilkinson also mapped out his market share assumptions on a white board visible to the judge.

Federal judge said little during Tuesday's hearing

During the latest hearing, Judge Jacqueline Scott Corley, a federal judge in San Francisco, said little on Tuesday, reported Reuters. She will decide the fate of the Microsoft-Activision deal. 

Why is FTC opposing the Microsoft-Activison deal?

According to FTC, the deal would give Microsoft exclusive access to Activision games. This will leave other platforms like Nintendo and Sony Group out in cold. Sharing a similar opinion, company's like Sony have also raised their objections against the deal. To this Microsoft has argued that it would be better off financially by licensing the games to all comers.

The historic deal that would give Microsoft an upper edge in the gaming industry has so far won approval from many jurisdictions. But FTC in the United States and Britain's Competition and Markets Authority have been questioning the impact of the deal on other players and on the gaming industry.

(With inputs from Reuters)