They have, I think I’ve posted at least one thread…. I’m too lazy to search lol but I’ve seen it pop up when searching for other stuff
*edit to add below
Same law firm (Weil) and legal team that is advising MS
William Kovacic, former FTC Commissioner, speculated that the FTC losing the Meta case could help MS to reach a settlement.
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From the lawyer covering the topic…
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New report from MLex:
- According to MLex, Microsoft today received formal EU objections to the acquisition (no wonder that there were no leaks, there was nothing to leak
)- MS declined to confirm receiving the charge-sheet, but said that it’s determined to resolve any issues.
- MS says that "We are committed to solutions and finding a path forward for this deal. We are listening carefully to the commission's concerns and are confident we can address them."
- The CMA is expected to release its provisional findings in the coming days (early February).
I guess that now it’s more likely to get press reports during the week about the SO.
Microsoft offers commitment to U.S. court not to close Activision Blizzard merger before May, but seeks outright dismissal of so-called gamers' lawsuit anyway
On January 19, Microsoft stipulated during a U.S. court hearing (on its motion to stay the so-called gamers' lawsuit in the Northern Distri...
Sony's Jim Ryan, Activision Blizzard's Bobby Kotick SUBPOENAED in so-called gamers' lawsuit in San Francisco: trial witnesses may include Microsoft's Satya Nadella, Brad Smith, Phil Spencer
We're in the middle of a flurry of news concerning regulatory and legal challenges to Microsoft's acquisition of Activision Blizzard King (N...
The Gamers lawyers want them to testify…
Their lawyers want access to…
MS lawyers…
From the lawyer covering the topic…
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Nvidia is part of the FTC process because ABK served them a subpoena.
They have until February 13th to respond.
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Nvidia is part of the FTC process because ABK served them a subpoena.
They have until February 13th to respond.
Chinese game developers said to give positive feedback on Activision/Microsoft
Chinese videogame developers are said to have recently given some positive feedback to China regulators in regard to Microsoft's (MSFT) planned acquisition of Activision...
seekingalpha.com
Chinese videogame developers are said to have recently given some positive feedback to China regulators in regard to Microsoft's (NASDAQ:MSFT) planned acquisition of Activision (NASDAQ:ATVI).
The developers told China's State Administration for Market Regulation that they don't believe the megadeal would cause significant competition issues, according to traders, who cited a Capitol Forum report circulating on Wednesday. Activision's market share in China is small.
Rumor out there that the CMA will block on 2/10, which would basically end it.
Seems people are jumping on basically nothing to make that rumor.
I can see it going to court but the CMA did post a pro merger article the other month.
The cma will probably be the first to make their statements public….I think it may be soon-ish
From the lawyer covering the topic…
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New subpoena served to Sony, now from the FTC. They have until February 15th.
Sony also has a subpoena from MS, with a deadline of February 1st. I guess that this week we'll know if they respond to it or require more time.
———
MS is trying to obtain documents and information from Sony that could be used as evidence during the administrative process. ABK is doing the same with nVidia.
This process is called "Discovery". It's more common in the US than in Europe, in any case.
During the discovery phase, MS/ABK want to better understand the arguments presented by Sony/nVidia to the FTC, to learn about facts and info that could be useful for their case and even obtain concessions and admissions about what Sony/nVidia shared with the FTC (for example, discrediting some witness, expert reports or data that could condition Sony/nVidia early on).
The problem with discovery is that it's expensive and can require a lot of time (if it includes electronic documents like chats, messages, videocalls, emails, etc. you are going to have to analyse millions of pieces of info). At the same time, a bad strategy during discovery can seriously affect the likelihood of your case (because you missed relevant information or you gave away too much).
Discovery is done under very specific rules, and MS/ABK can ask for a lot. But those rules also allow Sony/nVidia to defend themselves and limit the information or facts that can be analysed/accessed.
So, what MS/ABK and Sony/nVidia are doing right now is negotiating/discussing the scope and schedule of the discovery process: the amount and type of info that can be analysed as well as when and how that info can be accessed.
So, it makes sense that Sony wants more time: they have been very active during the whole process (lots of evidence to check) and they probably want to limit what can be accessed (so MS has less options to win).
———
If Sony fails to produce the info requested by MS, the same request can be presented before the judge, who will decide if the request is valid and the extent of it.
If Sony still doesn't want to cooperate, it could be sanctioned and certain allegations could be considered automatically true or not even disputed.
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New subpoena served to Sony, now from the FTC. They have until February 15th.
Sony also has a subpoena from MS, with a deadline of February 1st. I guess that this week we'll know if they respond to it or require more time.
———
MS is trying to obtain documents and information from Sony that could be used as evidence during the administrative process. ABK is doing the same with nVidia.
This process is called "Discovery". It's more common in the US than in Europe, in any case.
During the discovery phase, MS/ABK want to better understand the arguments presented by Sony/nVidia to the FTC, to learn about facts and info that could be useful for their case and even obtain concessions and admissions about what Sony/nVidia shared with the FTC (for example, discrediting some witness, expert reports or data that could condition Sony/nVidia early on).
The problem with discovery is that it's expensive and can require a lot of time (if it includes electronic documents like chats, messages, videocalls, emails, etc. you are going to have to analyse millions of pieces of info). At the same time, a bad strategy during discovery can seriously affect the likelihood of your case (because you missed relevant information or you gave away too much).
Discovery is done under very specific rules, and MS/ABK can ask for a lot. But those rules also allow Sony/nVidia to defend themselves and limit the information or facts that can be analysed/accessed.
So, what MS/ABK and Sony/nVidia are doing right now is negotiating/discussing the scope and schedule of the discovery process: the amount and type of info that can be analysed as well as when and how that info can be accessed.
So, it makes sense that Sony wants more time: they have been very active during the whole process (lots of evidence to check) and they probably want to limit what can be accessed (so MS has less options to win).
———
If Sony fails to produce the info requested by MS, the same request can be presented before the judge, who will decide if the request is valid and the extent of it.
If Sony still doesn't want to cooperate, it could be sanctioned and certain allegations could be considered automatically true or not even disputed.
CMA likely to publish provisional findings on Microsoft/Activision Blizzard merger by next week
The CMA is expected to publish its provisional findings on the ongoing review of the Microsoft/Activision Blizzard merger in a week’s time.
www.equityreport.co.uk
- Provisional findings (PF) from he CMA coming next week.
- The sources (two lawyers linked to the parties or third parties) say that MS is waiting the PF before offering remedies.
- The CMA is very hard to read at the moment and MS will probably learn about what's happening at the same time as everybody else.
- The outcome of the PF could depend on wether they include the ecosystem theory of harm or not.
- If the CMA blocks the deal, they'll need to back up its claims with substantive evidence from third parties to defend its position in a possible appeal.
- A third source, another lawyer linked to the case, believes that the deal shouldn't be opposed but that aligning remedies between the CMA and the EC will be a challenge because the CMA has a more formal approach and the EU process is more interactive.
- The same lawyer believes that the regulators' position about the case is a combination of the vocal opposition from a competitor (Sony) and some overreaction over the last ten years where vertical mergers have been constantly approved. "It's odd that it even got this far", he/she says.
- Sony may have been rejecting the offers from MS hoping to secure better licensing terms through a formal remedy agreement.
From the lawyer covering the topic…
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Sony gets 7 more days to serve the subpoena from MS, but this time it wasn’t completely agreed by Microsoft (the judge granted it).
New, and it sounds like final, deadline is February 10th.
We have more info about what MS is requesting:
- 45 distinct document requests, 13 of which have multiple subparts, for a total of more than 120 separate document requests.
- These requests demand all documents related to nearly all aspects of SIE's business, as well as extensive sets of sales, financial, and personal user data (e.g., user date of birth, user country, user gender, covering what will likely be millions of users).
- Ten of these requests seek materials going back more than 11 years to January 2012.
- Sony estimates that providing the response to MS will cost approximately $2 million or more in fees and expenses and demand weeks of intense work and substantial efforts and involvement of SIE personnel.
- MS is requesting all documents related to performance reviews and evaluations of all Sony gaming leadership or management, all documents relating to SIE's gaming business sent to, received from, or exchanged with other Sony entities, and executed copies of every content licensing agreement SIE has entered into with any third-party publisher over the past 11 years, among others.
- Sony has offered to review and produce responsive, non-privileged Microsoft email, attachments, and Teams chats for seven custodians, collected from 2019 through the present.
- Sony is not happy with the "unrealistically short deadlines and irrelevant requests" from MS.
- In any case, Sony anticipates that this will be its last request for an extension to the motion to quash deadline and that they will either reach final agreement or narrow any impasse by February 10, 2023. Microsoft disagrees with the relief requested in this motion.
More drama
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Sony gets 7 more days to serve the subpoena from MS, but this time it wasn’t completely agreed by Microsoft (the judge granted it).
New, and it sounds like final, deadline is February 10th.
We have more info about what MS is requesting:
- 45 distinct document requests, 13 of which have multiple subparts, for a total of more than 120 separate document requests.
- These requests demand all documents related to nearly all aspects of SIE's business, as well as extensive sets of sales, financial, and personal user data (e.g., user date of birth, user country, user gender, covering what will likely be millions of users).
- Ten of these requests seek materials going back more than 11 years to January 2012.
- Sony estimates that providing the response to MS will cost approximately $2 million or more in fees and expenses and demand weeks of intense work and substantial efforts and involvement of SIE personnel.
- MS is requesting all documents related to performance reviews and evaluations of all Sony gaming leadership or management, all documents relating to SIE's gaming business sent to, received from, or exchanged with other Sony entities, and executed copies of every content licensing agreement SIE has entered into with any third-party publisher over the past 11 years, among others.
- Sony has offered to review and produce responsive, non-privileged Microsoft email, attachments, and Teams chats for seven custodians, collected from 2019 through the present.
- Sony is not happy with the "unrealistically short deadlines and irrelevant requests" from MS.
- In any case, Sony anticipates that this will be its last request for an extension to the motion to quash deadline and that they will either reach final agreement or narrow any impasse by February 10, 2023. Microsoft disagrees with the relief requested in this motion.
More drama
Well, you should of kept your mouth shut and mind your own business!
Um, for those who would rather have it read to them (the post above)
Haven’t watched it, maybe later, but I’m sure it covers some, maybe more maybe less
Haven’t watched it, maybe later, but I’m sure it covers some, maybe more maybe less
Theyve had to been aware that that may have been an outcome, they have lawyers and lobbyists who I’m sureknow of it as well. I’d assume that ms is aware of the details for previous deals with Bethesda game exclusives
From the lawyer covering the topic…
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Next important dates (April is going to be busy):
- Early February 2023 (between 8th and 10th, probably): provisional findings and remedies (if required) from the CMA.
- April 11th 2023: final decision from the EC.
- April 12th 2023: motion for a preliminary injunction on the gamers' lawsuit.
- April 18th 2023: second extension of the original outside date. If MS quits by that date they have to pay a termination fee of $2,500,000,000; if they don’t, the outside date gets extended until July 18th 2023.
- April 26th 2023: final report and remedies (if required) from the CMA.
- April 28th 2023: decision from New Zealand.
- April - May 2023: decision from the SAMR in China.
- July 18th 2023: The end of the second extension and final outside date in the merger agreement. If MS quits by that date they have to pay a termination fee of $3,000,000,000; if they don’t, they’ll have to renegotiate the outside date with ABK.
- August 2nd 2023: beginning of the FTC in-house trial.
- Early 2024: decision from the FTC administrative law judge.
- Anything beyond that: unknown
On the other hand, let's set expectations for next week
- The provisional findings (PF) from the CMA is a document that essentially works like a draft decision. It must be followed by the final report.
- The PF will be published (in non-confidential form) on the CMA's website. Expect at least 60 - 80 pages, although I think that this case is more likely to be between 120 - 170 pages. There are PF that go beyond 400 pages :S
- Although it may happen, normally there are no changes between the PF and the final report regarding statutory questions and the "gist" of the case. That's why the PF are so relevant. If there is a change, the CMA has to publish on its website and disclose to all the relevant parties its reasons for changing its PF in order to provide the parties with an opportunity to comment prior to the publication of the final report.
- The PF will create three main scenarios:
A) The deal gets blocked: MS, ABK and third parties will have at least 21 days to comment on the PF. A notice of possible remedies will also be published because prohibition is a remedy to address a substantial lessening of competition. Once all responses have been considered, the CMA will finalise its report and announce its decision.
If this happens, I think that deal will be very likely done, but expect more developments at least until the end of April (responses to the PF from MS, ABK and third parties, final report and more).
B) The deal gets approved without remedies: MS, ABK and third parties will have at least 21 days to comment on the PF. A notice of possible remedies won't be published in this case because there is no substantial lessening of competition. Once all responses to the PF have been considered, the CMA will finalise its report and announce its decision.
If this happens, I think that deal it's very likely to go through, but expect more developments until the end of April (responses to the PF from third parties, final report and more). Then in May, June and July, decisions from the rest of jurisdictions. And in August, maybe the FTC trial (if MS hasn't closed the deal before that).
C) The deal is anticompetitive but can be fixed through remedies: MS, ABK and third parties will have at least 21 days to comment on the PF. A notice of possible remedies will also be published, where the CMA will initially propose remedies to address any competition concerns. MS, ABK and third parties will have at least 7 days (normally 14) to comment on the remedies notice. Once all responses have been considered, including a remedies working paper where the parties and the CMA will have been discussing options for remedies, the CMA will finalise its report and announce its decision (including the remedies that may have been adopted).
This is the most complex and uncertain scenario because depending on the remedies proposed and the ones that MS/ABK are willing to accept, the deal could go through or being abandoned.
The CMA is unlikely to accept behavioural remedies, but more likely to accept structural remedies.
In any case, if this happens and the parties and the CMA agree on a remedy package, expect more developments until the end of April (responses to the PF from third parties, MS and ABK, responses to the remedies notice from MS, ABK and third parties, final report and more). Then, the CMA has 12 extra weeks following publication of its final report to negotiate and finalise remedies or order them. So, this would go on at leat until the end of July 2023.
Therefore, the provisional findings from the CMA are going to be a huge step forward for this case and will unblock lots of other review processes happening in different jurisdictions, but it won't be the end.
I mean, even if this gets blocked, we are going to be here at least until the end of April.
Get ready and have fun!
———————————————————————————
Next important dates (April is going to be busy):
- Early February 2023 (between 8th and 10th, probably): provisional findings and remedies (if required) from the CMA.
- April 11th 2023: final decision from the EC.
- April 12th 2023: motion for a preliminary injunction on the gamers' lawsuit.
- April 18th 2023: second extension of the original outside date. If MS quits by that date they have to pay a termination fee of $2,500,000,000; if they don’t, the outside date gets extended until July 18th 2023.
- April 26th 2023: final report and remedies (if required) from the CMA.
- April 28th 2023: decision from New Zealand.
- April - May 2023: decision from the SAMR in China.
- July 18th 2023: The end of the second extension and final outside date in the merger agreement. If MS quits by that date they have to pay a termination fee of $3,000,000,000; if they don’t, they’ll have to renegotiate the outside date with ABK.
- August 2nd 2023: beginning of the FTC in-house trial.
- Early 2024: decision from the FTC administrative law judge.
- Anything beyond that: unknown
On the other hand, let's set expectations for next week
- The provisional findings (PF) from the CMA is a document that essentially works like a draft decision. It must be followed by the final report.
- The PF will be published (in non-confidential form) on the CMA's website. Expect at least 60 - 80 pages, although I think that this case is more likely to be between 120 - 170 pages. There are PF that go beyond 400 pages :S
- Although it may happen, normally there are no changes between the PF and the final report regarding statutory questions and the "gist" of the case. That's why the PF are so relevant. If there is a change, the CMA has to publish on its website and disclose to all the relevant parties its reasons for changing its PF in order to provide the parties with an opportunity to comment prior to the publication of the final report.
- The PF will create three main scenarios:
A) The deal gets blocked: MS, ABK and third parties will have at least 21 days to comment on the PF. A notice of possible remedies will also be published because prohibition is a remedy to address a substantial lessening of competition. Once all responses have been considered, the CMA will finalise its report and announce its decision.
If this happens, I think that deal will be very likely done, but expect more developments at least until the end of April (responses to the PF from MS, ABK and third parties, final report and more).
B) The deal gets approved without remedies: MS, ABK and third parties will have at least 21 days to comment on the PF. A notice of possible remedies won't be published in this case because there is no substantial lessening of competition. Once all responses to the PF have been considered, the CMA will finalise its report and announce its decision.
If this happens, I think that deal it's very likely to go through, but expect more developments until the end of April (responses to the PF from third parties, final report and more). Then in May, June and July, decisions from the rest of jurisdictions. And in August, maybe the FTC trial (if MS hasn't closed the deal before that).
C) The deal is anticompetitive but can be fixed through remedies: MS, ABK and third parties will have at least 21 days to comment on the PF. A notice of possible remedies will also be published, where the CMA will initially propose remedies to address any competition concerns. MS, ABK and third parties will have at least 7 days (normally 14) to comment on the remedies notice. Once all responses have been considered, including a remedies working paper where the parties and the CMA will have been discussing options for remedies, the CMA will finalise its report and announce its decision (including the remedies that may have been adopted).
This is the most complex and uncertain scenario because depending on the remedies proposed and the ones that MS/ABK are willing to accept, the deal could go through or being abandoned.
The CMA is unlikely to accept behavioural remedies, but more likely to accept structural remedies.
In any case, if this happens and the parties and the CMA agree on a remedy package, expect more developments until the end of April (responses to the PF from third parties, MS and ABK, responses to the remedies notice from MS, ABK and third parties, final report and more). Then, the CMA has 12 extra weeks following publication of its final report to negotiate and finalise remedies or order them. So, this would go on at leat until the end of July 2023.
Therefore, the provisional findings from the CMA are going to be a huge step forward for this case and will unblock lots of other review processes happening in different jurisdictions, but it won't be the end.
I mean, even if this gets blocked, we are going to be here at least until the end of April.
Get ready and have fun!
Microsoft’s Activision Deal Tests a New Global Alignment on Antitrust
Until recently, antitrust regulators in Europe and the United States took different approaches. Now, they’re on the same page — which some experts say makes closing deals harder.
Microsoft's legal team also expects the antitrust authority in Britain to oppose the transaction, while it believes the European Commission is open to potential remedies, according to four people briefed on the matter who were not authorized to speak publicly.
Some of these people said that Microsoft was hoping to convince both Britain and the European Union to accept its concessions and approve the deal, which could make it easier for the company to reach an agreement with the F.T.C. before the scheduled administrative trial starts in the summer. If all of the agencies accept the compromise, the (perhaps wishful) thinking goes, none of them will look weak on Big Tech.
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From the lawyer covering the topic…
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If the CMA and the EC are indeed aligned in the case, it would make sense because we already know that the EC has concerns. So, the CMA also having concerns could be logical.
The 70 billion $ question is what kind of remedies may address those concerns
Divesting Activision (and keeping Blizzard and King) would be the perfect one (for the CMA). But could MS/ABK accept that? 