MLex has a new report about the review process in Japan:
- It is believed that the deal has yet to be formally notified.
- In June 2022, the Japan Fair Trade Commission (JFTC) called for third-party views about the deal, even though it was at a "Phase I review" (I guess they mean pre-notification talks if it hasn't been notified yet). It was due to a new initiative to seek information about competition concerns in the digital markets at an early stage.
- Similar issues that Western regulators are being analysed (gaming market, cloud gaming, ecosystem advantages, etc).
- There hasn't been an uproar against the planned merger from the Japanese gaming industry or community.
- The JFTC hasn't blocked a deal in decades and usually accepts behavioural remedies
- According to the "2022 CESA Games White Paper," published in August 2022, Nintendo has 74.8%, Sony 23.4% and Microsoft's 1.8% of the Japanese market.
- The JFTC is known to analyse global deals in similar ways as Western regulators and approving the same conditions soon after its peers' decisions.
- The timing of the Japanese review will depend on MS's strategy, but maybe the JFTC wants to avoid affecting the FTC's court battle by giving an early clearance with easy conditions.
- In any case, it's not even clear if the JFTC would announce its decision because they don't have a legal obligation to disclose an initial-review result.
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