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The Microsoft / Activision Blizzard acquisition |OT| Antitrust Simulator (completed; discussing post-merger issues)

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AhhBisto

AhhBisto

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Jun 30, 2023
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UK
SevenVolts said:
While I personally understand there being a support or people being against this acquisition. I do not understand how some people feel like it's ok to attack the FTC employees for doing their job. I am a bit disgusted after reading this article.

FTC Blasted By Congress And Gamers For Doing Its Job
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People who do things like doxxing and death threats are obviously scumbags but the majority of comments I've seen have been fair in criticism even if a lot are jokey and full of memes, and it's kinda fascinating to see the gaming community of all places take an interest in bureaucracy like they have.

Also the core criticism here really is that the FTC are not doing their job properly, even before this Microsoft-ABK debacle, Lina Khan's tenure had been under fire.
 
OfficerRob

OfficerRob

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Oct 25, 2017
26,168
SevenVolts said:
While I personally understand there being a support or people being against this acquisition. I do not understand how some people feel like it's ok to attack the FTC employees for doing their job. I am a bit disgusted after reading this article.

FTC Blasted By Congress And Gamers For Doing Its Job
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Fuck the congressional Republicans looking to score political points, but there is PLENTY to scrutinize the FTC for in this case. When the judge has to remind FTC lawyers that they are supposed to be looking out for consumers and not Sony, that's pretty fucking awful.
 
VibrantStorm

VibrantStorm

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May 11, 2021
740
BringBackSonics said:
Their job is to protect consumers, not Sony. They are not doing their job in this case. It's okay to criticise the head of the FTC for wasting tax payer dollars on a baseless suit.
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THEVOID said:
It's okay to voice your opinion, we are footing the bill and they aren't doing their job at protecting consumers. Like at all. When the judge questions their motives you have a problem.
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AhhBisto said:
People who do things like doxxing and death threats are obviously scumbags but the majority of comments I've seen have been fair in criticism even if a lot are jokey and full of memes, and it's kinda fascinating to see the gaming community of all places take an interest in bureaucracy like they have.

Also the core criticism here really is that the FTC are not doing their job properly, even before this Microsoft-ABK debacle, Lina Khan's tenure had been under fire.
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OfficerRob said:
Fuck the congressional Republicans looking to score political points, but there is PLENTY to scrutinize the FTC for in this case. When the judge has to remind FTC lawyers that they are supposed to be looking our for consumers and not Sony, that's pretty fucking awful.
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these are fair points. thanks for sharing your view on this
 

Revenge-FNF

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Jul 2, 2023
38
AhhBisto said:
I might be wrong here but I think it doesn't lessen competition because the service will still exist but it won't belong to a provider that has direct control over the content, an advantage Sony also wouldn't have.
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The service will still exist, but the consumer will pay more because it will pay for two services.

It will also lessen Competition, because a consumer that only wants to play in the Cloud, PS Plus will be cheaper. That also means that Sony might increase their price.
 
Axel Stone

Axel Stone

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Jan 10, 2020
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Revenge-FNF said:
If i have read it right, the solution in the Uk is for Microsoft to sell the Cloud to a third party.

That means in all over the world, the consumer pays the Gamepass and can play in the cloud. In the Uk it will need to pay the gamepass and the Cloud to the third party.
How this does not harm the consumer in the Uk? How is this good for the consumer?

Also, the Market Leader will still have their cloud in PS Plus.

That means in the Uk, Sony can say their Cloud is cheaper than Microsoft. People only need to buy PS Plus and they can get their Cloud.
How this does not lessen Competition?
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IANAL, but I would imagine that UK third party could be a B2B setup that only sells UK licenses to streaming services, so the company would just license ActiBlizz titles to Microsoft and others for inclusion in their services. I wouldn't have thought it would need to be a company that runs a separate consumer-facing service.
 
FarSight XR-20

FarSight XR-20

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Jan 4, 2018
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View: https://twitter.com/tomwarren/status/1679773925499183104


The CMA considers that there is insufficient time remaining in the statutory period for full and proper consideration of Microsoft's submission on the proposed Order. As such, the Inquiry Group considers that there are special reasons to extend by six weeks under section 41A(2) of the Act the period for the discharge of its duty under section 41(2) of the Act.
The revised period will therefore end on 29 August 2023. However, the Inquiry Group aims to discharge its duty as soon as possible and in advance of this date.
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P30

P30

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May 23, 2022
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Pixis

Pixis

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Oct 31, 2017
355
Iggy1404 said:
Can anyone explain what this means? Microsoft closing without CMA approval inbound?
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The CMA have about 12 weeks from the date of their final report to make the final order. This would have been on 18 July but under statute the CMA can extend that period by 6 weeks to make the final order, which is what they've done here.
 
AhhBisto

AhhBisto

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Iggy1404 said:
Can anyone explain what this means? Microsoft closing without CMA approval inbound?
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It sounds like they have soft CMA approval to close as the CMA extending the deadline means Microsoft wouldn't fall foul of a final report going against them in that period I think? The last sentence in that statement shows that they are working on the resolution with Microsoft and aim to clear it up in advance of the 4 week extension.

The deadline was Tuesday, they've basically given themselves permission to come to an agreement on Wednesday.
 
Iggy1404

Iggy1404

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Feb 12, 2020
111
Pixis said:
The CMA have about 12 weeks from the date of their final report to make the final order. This would have been on 18 July but under statute the CMA can extend that period by 6 weeks to make the final order, which is what they've done here.
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Dirt McGirt said:
Seems to me this is the "CMA saving face" approach?
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AhhBisto said:
It sounds like they have soft CMA approval to close as the CMA extending the deadline means Microsoft wouldn't fall foul of a final report going against them in that period I think? The last sentence in that statement shows that they are working on the resolution with Microsoft and aim to clear it up in advance of the 4 week extension.

The deadline was Tuesday, they've basically given themselves permission to come to an agreement on Wednesday.
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Thanks for chiming in! Hopefully, we'll receive some kind of confirmation that CMA allows them to close in the interim.
 

Pheonix Will

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Sep 6, 2021
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I was wondering if the CMA needed more time - when you're in active negotiations they will be actively on the fly trying to assess market impact as they're going. Sometimes that's easy, other times it needs more effort especially if its some sort of deal that wasn't considered in phase 2.
 
Agent Icebeezy

Agent Icebeezy

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Oct 27, 2017
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FarSight XR-20 said:

View: https://twitter.com/tomwarren/status/1679773925499183104

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its-never-gonna-end-josh-dallas.gif
 
Pixis

Pixis

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Oct 31, 2017
355
AhhBisto said:
It sounds like they have soft CMA approval to close as the CMA extending the deadline means Microsoft wouldn't fall foul of a final report going against them in that period I think? The last sentence in that statement shows that they are working on the resolution with Microsoft and aim to clear it up in advance of the 4 week extension.

The deadline was Tuesday, they've basically given themselves permission to come to an agreement on Wednesday.
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That (the extension) is not soft approval to close because it means the interim order remains in place until at least the new extended date in August. Something has to happen with the IO for a soft approval.
 
LordRuyn

LordRuyn

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Oct 29, 2017
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Pixis said:
That (the extension) is not soft approval to close because it means the interim order remains in place until at least the new extended date in August. Something has to happen with the IO for a soft approval.
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That's what they likely mean by special reasons and resolving them ASAP. Seems like they've come to an agreement with MSFT and now they need to get that part taken care of.
 
AhhBisto

AhhBisto

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Pixis said:
That (the extension) is not soft approval to close because it means the interim order remains in place until at least the new extended date in August. Something has to happen with the IO for a soft approval.
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I'm probably being rather glib with my language about a soft approval, it just sounds like the CMA are working with Microsoft to the point that they now wouldn't object to Microsoft closing while they work out their deal.
 

Pheonix Will

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Sep 6, 2021
1,353
AhhBisto said:
I'm probably being rather glib with my language about a soft approval, it just sounds like the CMA are working with Microsoft to the point that they now wouldn't object to Microsoft closing while they work out their deal.
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That would still open Microsoft up to fines. Their conclusion at the end could be no agreement which means everything was for nothing and CAT resumes.
 
FarSight XR-20

FarSight XR-20

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Jan 4, 2018
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From the notice

The CMA invited written representations on the proposed Order from any interested person or persons with a deadline of 17:00 UK time on 19 June 2023. The CMA received written representations on the proposed Order from interested persons which are currently under consideration. In particular, the CMA received a detailed and complex submission from Microsoft claiming that there are material changes in circumstance and special reasons under section 41(3) of the Act which mean that the CMA should not adopt the proposed Order.
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Enterprise Act 2002

An Act to establish and provide for the functions of the Office of Fair Trading, the Competition Appeal Tribunal and the Competition Service; to make provision about mergers and market structures and conduct; to amend the constitution and functions of the Competition Commission; to create an...
www.legislation.gov.uk www.legislation.gov.uk

The decision of the [F1CMA] under subsection (2) shall be consistent with its decisions as included in its report by virtue of section 35(3) or (as the case may be) 36(2) unless there has been a material change of circumstances since the preparation of the report or the [F1CMA] otherwise has a special reason for deciding differently.
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Kopite

Kopite

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Oct 28, 2017
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Dunno if the CMA have some agreement, but I feel if they didn't they'd have put out another statement confirming MS couldn't close after FTC judgement and the developments since
 
LordRuyn

LordRuyn

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Oct 29, 2017
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FarSight XR-20 said:
From the notice



Enterprise Act 2002

An Act to establish and provide for the functions of the Office of Fair Trading, the Competition Appeal Tribunal and the Competition Service; to make provision about mergers and market structures and conduct; to amend the constitution and functions of the Competition Commission; to create an...
www.legislation.gov.uk www.legislation.gov.uk
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This proves what most of us have been saying, this isn't new and they have been in contact for a while. If they've been talking since at least June 19th, they've reached a deal and are just waiting for the TRO to run its course.
 
Big Boy

Big Boy

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Oct 25, 2017
2,956
Yeah that is not permission to close. It's still a positive for Microsoft though and makes a short extension wih Activision far more likely than closing ove rthe CMA
 
Psyrgery

Psyrgery

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Nov 7, 2017
1,758
Does this mean that the CMA is stalling???

Having trouble trying to translate or make sense of their last statement
 
JadedGhost

JadedGhost

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Jan 28, 2019
905
August 29th ABK could potentially close and then a few days later Starfield launches early access. That's a potentially busy week for xbox!
 
=[::::::::::>

=[::::::::::>

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May 7, 2023
134
Pixis said:
That (the extension) is not soft approval to close because it means the interim order remains in place until at least the new extended date in August. Something has to happen with the IO for a soft approval.
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Appreciate this is very much unchartered territory and nothing can be said definitively but to your understanding does this mean MS cannot close by the 18th without facing repercussions (fines etc) by the CMA?
 
Fiksi

Fiksi

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Oct 27, 2017
878
I assume there's no reason to be concerned about any CMA updates at this stage, unless ABK or MS call them out.
 
Pixis

Pixis

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Oct 31, 2017
355
=[::::::::::> said:
Appreciate this is very much unchartered territory and nothing can be said definitively but to your understanding does this mean MS cannot close by the 18th without facing repercussions (fines etc) by the CMA?
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Correct - effectively whilst the interim order is still in place, Microsoft can't close without repercussions from doing so.
 
Psyrgery

Psyrgery

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Nov 7, 2017
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cowboi

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Dec 31, 2021
249
Psyrgery said:
Besides the interim order (which apparently is that prohibiting Microsoft from acquiring Activision assets and vice-versa, worldwide) this delay was apparently proposed by Microsoft and the CMA agreed to it?


View: https://twitter.com/MateoUribeRodr1/status/1679780832662155265?s=20
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It says "Microsoft [is] claiming there are material changes in the circumstances", they didn't propose the delay, it's CMA that's delaying because there is insufficient time to consider this new development.

I still think if the TRO is not extended today, $MSFT will be closing the acquisition soon.
 
Pixis

Pixis

Member
Oct 31, 2017
355
Psyrgery said:
Besides the interim order (which apparently is that prohibiting Microsoft from acquiring Activision assets and vice-versa, worldwide) this delay was apparently proposed by Microsoft and the CMA agreed to it?


View: https://twitter.com/MateoUribeRodr1/status/1679780832662155265?s=20
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The CMA are under a duty under the Enterprise Act to consider if there has been a material change of circumstances since their report (or if they have a special reason for acting differently). If Microsoft are proposing (which it seems like they are!) a deal restructure and such then that constitutes a material change of circumstances such that the CMA need to extend (given they won't have time, as they mention, to consider those changes before the current final order deadline). So it's a combination of Microsoft proposing potentially but more the CMA being somewhat bound to extend as a result.
 
TheRealBigRich

TheRealBigRich

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Oct 29, 2017
811
Just my opinion but I'm skeptical that MS will close within the next few days . The CMA extension feels like good news for MS but will have to extend the ABK agreement a little over a month . I'll be curious what MS does coming up soon.
 
Iggy1404

Iggy1404

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Feb 12, 2020
111
TheRealBigRich said:
Just my opinion but I'm skeptical that MS will close within the next few days . The CMA extension feels like good news for MS but will have to extend the ABK agreement a little over a month . I'll be curious what MS does coming up soon.
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I'd say it's reasonable to expect for MSFT and ATVI to agree to extend the contract until CMA's final decision. Without financial penalties of course.
 
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