Ryuu96 said:
Microsoft Didn't Mislead EU Over ZeniMax Deal, Watchdog Says in Response to US Concerns Microsoft didn't make any "commitments" to EU regulators not to release Xbox-exclusive content following its takeover of ZeniMax Media, the European Commission has said. US enforcers yesterday suggested that the US tech giant had misled the regulator in 2021 and cited that as a reason to challenge its proposed acquisition of Activision Blizzard. Microsoft Didn't Lie to the EU on ZeniMax Deal Like the FTC Said Repeatedly throughout the Zenimax acquisition, Microsoft also stated that future exclusivity would be decided on a "case-by-case" basis. Including in filings for the European Commission. Microsoft said to the European Commission it “would not have the incentive to cease or limit making ZeniMax games available for purchase on rival consoles." But this can very much be taken as talking about existing titles as they've already said that future titles will be case-by-case to the European Commission. They repeatedly said that they would not pull any existing titles from the PlayStation store as well. Such as The Elder Scrolls Online, Skyrim, Fallout 76, etc. On top of that, the CMA also knows that Redfall's PS5 version was cancelled but aren't bothered at all like the FTC are and haven't mentioned it, the CMA also dropped their Console SLC worries. At the end of the day, the European Commission have said that Microsoft didn't mislead them, they made no assurances to not make things exclusive and their actions were deemed acceptable. They also investigated scenarios where Microsoft would make Zenimax titles exclusive at the time of investigation and deemed that it wouldn't hurt Sony/Nintendo enough. "While Microsoft could have the technical ability to implement an exclusivity strategy with regard to ZeniMax games vis-à-vis rival consoles, the Commission considers that the combined entity will not have the ability to engage in a successful input foreclosure strategy. In this regard, as mentioned above, the Commission has carried out such analysis under both scenarios of total and partial foreclosure." If Microsoft did lie to European Commission (which they didn't) then we would not have reports that the European Commission is very likely to approve the deal on Behavioural Remedies or that they've dropped their Console SLC concerns completely because Microsoft doesn't have incentive to make CoD exclusive. Lying to a regulator body would get you in serious shit on your next acquisition. Best you can say is they bent words a little, a bit of lawyer speak to cover their asses on all basis, the European Commission understood it though. The FTC is in a desperation to block the deal and so they tried to claim that Microsoft lied to the European Commission to try to improve their already incredibly weak case and reportedly the FTC rushed a suit to block to put pressure on the European Commission/CMA to not approve the deal which would explain the lie accusation as well. I mean, the FTC is the reason that we have this thread in the first place because they invented up a new market in a desperate attempt to block the deal which is now backfiring and aiding Microsoft...So I wouldn't exactly take what the FTC are saying at face value and instead listen to what the European Commission have said. |
The european commision is claiming that Microsoft never decieved them because the commision incorrectly predicted that MS wouldn't withhold Starfield or other future Zenimax games from rival consoles. They were tricked by Microsoft, made an incorrect prediction, and now are trying to cover their tracks. See below...
https://ec.europa.eu/competition/mergers/cases1/202124/m10001_438_3.pdf
And just for those wondering what an input foreclosure strategy is....
https://www.vogel-vogel.com/faq-items/input-foreclosure-eu/?lang=en
Input foreclosure arises where the new entity would be likely to restrict access to the products or services that it would have otherwise supplied if the merger had not taken place.
Ryu do you seriously think that Starfield wouldn't be supplied to PS5 if the merger hadn't taken place?
