Microsoft's Proposed Content Licensing Remedy
3.3 To resolve the Console Gaming SLC, Microsoft will commit to continue licensing CoD to Sony – including all existing and future releases on the Xbox console – for a period of 10 years. The key elements of the proposed licensing remedy are set out below:
( a) Scope: The remedy will apply to CoD titles for consoles and associated content ("CoD Games"). CoD Games includes all past and current CoD titles available on PlayStation. In addition, all future CoD titles available on the Xbox console will also be available on PlayStation. CoD Games account for more than []% of Activision's publishing revenue on console.
( b) Term: The remedy will apply for a period of 10 years.
( c) Console platforms: The remedy will apply to all Sony consoles (including
PlayStation 4, PlayStation 4 Pro and PlayStation 5) and any successor consoles.
( d) Parity: The remedy will provide Sony with parity on release date, content, features, upgrades, quality and playability with the Xbox platform. Microsoft is prepared to commit to have an Objective Third Party Assessor []. The Objective Third Party Assessor [].
( e) Economic terms: All purchases will be subject to a revenue sharing arrangement, with Sony retaining []% of the revenue from sales of CoD Games, and content related to any CoD Games. [], []. Taking account of all payments from Sony to Activision, Sony currently receives a []of []%. As such, the proposed remedy represents a [] in Sony's economic terms.
Wholesale pricing parity: The remedy will provide that the wholesale price of CoD Games offered to Sony ("Wholesale Price") is [] for the equivalent version of the game on the Xbox platform.
( g) Subscription and streaming rights: Any CoD Game in a Microsoft multi- game subscription is eligible for inclusion in Sony's multi-game subscription service, at the same time and for the same duration. []. [].
( h) Terms: []
3.4 Microsoft's remedy will include the following mechanisms for monitoring compliance
and dispute resolution:
( a) Monitoring Trustee: A monitoring trustee will be appointed to monitor Microsoft's compliance with the remedy and to report to the CMA on a periodic basis. The identity of the monitoring trustee will be agreed with the CMA. The monitoring trustee will be remunerated by Microsoft.
( b) Objective Third Party Assessor: An Objective Third Party Assessor will be appointed to []. The identity of the Objective Third Party Assessor will be agreed with the CMA. Microsoft is considering potential candidates and can propose a shortlist to the CMA in due course. The Objective Third Party Assessor will be [].
( c) Fast-track Dispute Resolution Mechanism: Microsoft and Sony would be required to seek to resolve any dispute through cooperation and consultation within a reasonable period of time. If []. The arbitrator will be required to take into account that the purpose of the remedy is to allay concerns relating to the Merger. The CMA will be entitled to participate in all stages of the procedure. In the event of disagreement between the parties regarding the interpretation of the remedies, the arbitrator may seek the CMA's interpretation of the commitments and will be bound by the interpretation.
