Microsoft claims that the FTC lawsuit, which prevents the company from acquiring Activision Blizzard, violates its constitutional rights.

Microsoft’s legal counsel has responded to the Federal Trade Commission’s action. A 37-page document sets out Microsoft’s arguments for the legality of Activision’s acquisition of Blizzard. Microsoft accuses the FTC of violating its constitutional rights among its many arguments. Including its right to a fair trial and neutral arbitration.

Microsoft’s bid to acquire Activision Blizzard could have a significant impact on the gaming industry, as Activision Blizzard is responsible for some of the industry’s biggest franchises, including World of Warcraft and Call of Duty.

In an attempt by the FTC to block Microsoft’s attempt to buy Activision Blizzard, the company’s legal counsel has drafted a lengthy document outlining its concerns about the lawsuit. The FTC is accused of violating Microsoft’s constitutional rights on several points. Microsoft says the proceedings “violate Microsoft’s right to procedural due process under the Due Process Clause of the Fifth Amendment.” It also violates Microsoft’s right to a neutral arbiter. As they put it, “the Commission has prejudged the merits of the instant action.”

The FTC’s main concern is that the company will have too much influence within the industry. Especially when it comes to the Call of Duty franchise. Microsoft says this concern is unfounded. They argue, “The acquisition of a single game by the third-place console manufacturer cannot upend a highly competitive industry.” Microsoft claims that one of the primary motivations for the deal was to expand into the mobile market. According to them, “Xbox wants to grow its presence in mobile gaming, and three-quarters of Activision’s gamers and more than a third of its revenues come from mobile offerings.”

Microsoft also pointed out that it would not make sense to pay billions to acquire Call of Duty and then eliminate its PlayStation-based revenue stream.

The document also mentions that Xbox will continue to support multiplatform games such as The Elder Scrolls Online. It is understood that it is financially beneficial to make multiplayer games as widely available as possible.

The FTC has recently taken a close look at the gaming industry. Earlier this month, it fined Epic Games a record $500 million for violating children’s privacy laws and engaging in predatory monetization practices. This could have cost Fortnite players millions of dollars in unwanted purchases. The FTC also investigated loot boxes. The case was even sparked by the infamous Star Wars Battlefront 2 loot box controversy in 2019. As the gaming industry expands, regulators are paying more attention than ever.

Source: Game Informer, CNBC