Microsoft summons Sony Interactive Entertainment to its defense against the FTC lawsuit
Xbox's parent company Microsoft has subpoenaed Sony Interactive Entertainment to build its case in their defense in the US Federal Trade Commission's lawsuit. Here are the details.
Microsoft is currently preparing to defend itself to theUS Federal Trade Commission at court for its acquisition of Activision Blizzard. In that regard, some new information has now surfaced. As per the latest reports, Microsoft has apparently “subpoenaed” its rival Sony Interactive Entertainment to the court. Have the tables turned, with the ball now in Sony’s court? Read on for the details.
Microsoft summons Sony to the court in their defense
The Activision Blizzard acquisition deal announced by Microsoft early in 2022 has been facing the heat for quite some time. It finally culminated with the Federal Trade Commision (FTC) suing Microsoft on 8th December, 2022. As Microsoft now prepares its defense, the Xbox parent has reportedly subpoenaed Sony Interactive Entertainment. Microsoft seems to have resorted to its very own rival who has been vehemently against the acquisition from the start.
The official filings state the intention for the same as “to negotiate and thereby eliminate or narrow any issues that need to be presented to the Court for resolution” between Microsoft and SIE. It should be noted that Microsoft has until April 7, 2023 to complete fact discovery.
The above information surfaced as Sony Interactive Entertainment moved for a one week extension period for its response to the subpoena. As per the official filings which you can find here, the subpoena was originally issued on January 17, with a response date of January 20. Sony has now requested for a one-week extension on the deadline, till January 27, 2023, to “to move to limit or quash or otherwise respond to the Subpoena”.
Clearly Microsoft requires Sony to divulge some information which may include confidential details as well. As it is, Sony has long been a critique of Microsoft’s intention of acquiring Activision. The company believes that the deal will prove to be harmful for Sony as a competitor, especially for iits flagship title, Call of Duty. Microsoft on the other hand has assured and informed of a 10-year contract that will allow Sony to keep the upcoming Call of Duty titles on their platform.
Regardless, while the Microsoft Activision deal has been approved by governments of some countries like Brazil and Saudi, it continues to face stiff opposition from several others. About 16 governments from across the world continue with their scrutinization of the $68.7 billion acquisition. The US and UK governments thus continue to be at their tail with regulatory bodies like the FTC and the Competition and Markets Authority (CMA) respectively.