Microsoft Activision Takeover: No ‘Substantive’ Settlement Talks With US FTC, Lawyer Says

There are no “substantive” settlement discussions under way between US President Joe Biden’s administration and Microsoft to resolve a legal dispute over the Xbox maker’s $69 billion (roughly Rs. 5,71,900 crore) bid for games maker Activision Blizzard, a Federal Trade Commission attorney said on Tuesday.

The FTC, which enforces antitrust law, asked a judge to block the transaction in early December, arguing it would give Microsoft’s Xbox exclusive access to Activision games, leaving Nintendo consoles and Sony’s PlayStation out in the cold.

FTC attorney James Weingarten, speaking in a brief telephonic pretrial hearing, said there were no “substantive” settlement discussions between the two sides under way.

Microsoft argues that the deal would benefit gamers and gaming companies alike, offering to sign a legally binding consent decree with the FTC to provide Call of Duty games to rivals including Sony for a decade.

The case reflects the muscular approach to antitrust enforcement being taken by the administration of US President Joe Biden. But antitrust experts say the FTC faces an uphill battle to convince a judge to block the deal, because of the voluntary concessions offered by Microsoft to allay fears it could dominate the gaming market.

Michael Chappell, the FTC administrative law judge, will rule on the deal after hearings set for August 2023. Either side can then appeal to the same FTC commissioners who voted to bring the challenge, and then to a U.S. appeals court.

The deal faces scrutiny in the European Union which is to decide by March 23 whether to clear or block the deal.

© Thomson Reuters 2023


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Call of Duty Modern Warfare 2 Will Require Phone Number Verification Like Overwatch 2

Call of Duty: Modern Warfare 2 will require mobile number verification. A newly updated article on the Battle.net website claims that players are required to register with a phone number to play the game. The verification system, which Blizzard Entertainment likes to call SMS Protect, is aimed at cutting down on toxic behaviour from players and multiple free accounts. Call of Duty: Modern Warfare II launches on October 28 across PC, PS4, PS5, Xbox One, and Xbox Series S/X.

A similar practice caused issues for Overwatch 2 players, last week, where players reported being locked out of their Battle.net accounts. More specifically, those on prepaid mobile plans. A separate support page on the Battle.net website notes details regarding phone number verification, which states: “Mobile phones with prepaid plans may not work with the phone notification service.” As reports started piling up, Blizzard eventually eased the restrictions for players who had been signed up to Battle.net for more than a year. New players, however, will be required to add their numbers.

“We remain committed to combating disruptive behaviour in Overwatch 2 — accounts that were not connected to Battle.net, as well as new accounts, will still have to meet SMS Protect requirements,” So now, the upcoming Call of Duty: Modern Warfare 2 joins this verification practice, alongside any “newly created” Modern Warfare accounts. The page further states that notifications will only be text-message/ SMS based. Meaning, you can’t set it up for other two-factor authentication (2FA) apps like Authy, Google Authenticator, and their ilk. Furthermore, you can’t receive two-factor codes on VoIP services, be it iMessage or WhatsApp.

A PC Gamer report from last week noted that some Modern Warfare 2 beta players were getting locked out of their accounts, for having a prepaid mobile number. “This seems very wrong to require videogame players to enter into a contract with a telecom company before being allowed to play the game they paid for,” its source said. “Especially when prepaid phone plans like mine are becoming more and more common.”

Phone number authentication for games isn’t a new practice, as games like Rainbow Six Siege and Dota 2 have managed to implement it flawlessly. Even Counter-Strike: Global Offensive made this a common practice, requiring players to create a Prime account, in order to combat hackers and smurfs. For the uninitiated, smurfs are generally high-ranking players, who create multiple accounts, and disrupt low-tier matches for amusement. Think of it like a burner phone. Requesting a mobile number, however, restricts the account to one. Unless you’re carrying around multiple SIM cards — a common practice in India.

Neither of these multiplayer games has asked for a postpaid mobile number, which paints Blizzard’s requirements in a bad light. It’ll be interesting to see how this fares in a market like India, where 9 out of 10 people on average have a prepaid number. Furthermore, it is unclear if the practice applies to everyone on PC, given that Modern Warfare 2 is available on both Steam and Battle.net.

Call of Duty: Modern Warfare 2 launches October 28, across PC, PS4, PS5, Xbox One, and Xbox Series S/X. Digital pre-orders grant early access to the campaign segment, starting October 20.


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Microsoft’s Incentives to Block Rivals After Activision Deal Probed by EU Regulators: Details

EU antitrust regulators are asking games developers whether Microsoft will be incentivised to block rivals’ access to Call of Duty maker Activision Blizzard’s best-selling games, according to an EU document seen by Reuters. EU antitrust regulators are due to make a preliminary decision by November 8 on whether to clear Microsoft’s proposed $69 billion (roughly Rs. 5,67,600 crore) acquisition of Activision.

The EU competition enforcer also asked if Activision’s trove of user data would give the US software giant a competitive advantage in the development, publishing and distribution of computer and console games, the EU document shows.

The planned acquisition, the biggest in the gaming industry, will help Microsoft better compete with leaders Tencent and Sony.

After its decision next month, the European Commission is expected to open a four-month long investigation, underscoring regulatory concerns about Big Tech acquisitions.

Games developers, publishers and distributors were asked whether the deal would affect their bargaining power regarding the terms for selling console and PC games via Microsoft’s Xbox and its cloud game streaming service Game Pass.

Regulators also wanted to know if there would be sufficient alternative suppliers in the market following the deal and also in the event Microsoft decides to make Activision’s games exclusively available on its Xbox, its Games Pass and its cloud game streaming services.

They asked if such exclusivity clauses would reinforce Microsoft’s Windows operating system versus rivals, and whether the addition of Activision to its PC operating system, cloud computing services and game-related software tools gives it an advantage in the video gaming industry.

They asked how important the Call of Duty franchise is for distributors of console games, third-party multi-game subscription services on computers and providers of cloud game streaming services.

The questionnaire, with about 100 questions, asked which of the rivals such as Nvidia’s GeForce Now, Sony’s PlayStation, Google Stadia, Amazon Luna and Facebook Gaming could be considered the most attractive following the deal.

Respondents have until October 10 to reply.

© Thomson Reuters 2022


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Microsoft Deal to Acquire Activision Blizzard Faces Additional Scrutiny From UK Regulator: Report

Microsoft could face a roadblock in its attempt to take over game maker Activision Blizzard due to a UK regulator, according to a new report. The UK’s Competition and Markets Authority (CMA) has reportedly expressed concerns that the the Redmond company’s $69 billion (roughly Rs. 5,49,900 crore) deal to acquire the firm could negatively affect rivals who offer access to the publisher’s titles, while limiting their ability to compete in the cloud gaming sector. The firms reportedly have less than a week to propose ways to address the CMA’s concerns.

 According to a report by the Associated Press, the CMA on Thursday expressed its concerns in connection with Microsoft’s attempt to acquire Activision Blizzard, which was first revealed in January. The UK regulator is not the first to voice concerns regarding the deal — the FTC announced in February that it would review Microsoft’s deal with the game publisher.

Microsoft is “ready to work with the CMA on next steps and address any of its concerns,” the company’s president Brad Smith said, according to the report.

One of the concerns raised by the CMA was that Microsoft’s deal could affect rivals that offered access to Activision Blizzard games, according to the report. The firm is known for several popular titles and gaming franchises, including Call of Duty, World of Warcraft, Overwatch, and Diablo.

As per the report, the UK regulator has also expressed concerns regarding the impact of the deal on competition in the upcoming cloud gaming sector.

The CMA, which opened an initial inquiry into the deal in July, has reportedly asked Microsoft and Activision Blizzard to respond to its concerns within five days, before the deal faces further scrutiny.


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Call of Duty: Modern Warfare 2 Open Beta Dates Revealed, Starts September 18

Call of Duty: Modern Warfare 2 beta is coming in September. Activision confirmed in a blog post that the beta launch will be divided into two weekends, with PlayStation 5 and PlayStation 4 users getting first access. The first open beta phase begins on September 18, exclusively on the PS4 and PS5, and will conclude on September 20. Meanwhile, other major platforms, PC and Xbox, alongside PlayStation, get their share on September 24, as means to assess cross-play functionality. Each playtest is scheduled to begin at 10:30pm (IST)/ 1:00pm (ET)

An exclusive event titled Call of Duty: Next kicks off the release campaign on September 15, showcasing live gameplay and new features on their official YouTube channel. The news comes following the Call of Duty League Championship, held on August 7, which granted several viewers free beta codes to prepare for launch. As with previous betas, the dates for Call of Duty: Modern Warfare II beta are separated by platforms and pre-order status.

Similar to most AAA titles, players who pre-order Call of Duty: Modern Warfare 2 get early access. For PS4 and PS5 users, this would run from September 16–17, which will be followed by the previously stated open beta phase, the very next day, from September 18–20.

Pre-orders on PC (Battle.net) and Xbox grant early access from September 22–23. PlayStation users can get in the action as well, since this functions as a cross-play test. The open beta period, which is free to everyone, starts on September 24, giving complete access to CoD’s state-of-the-art multiplayer segment, and ends on September 26. So, if you pre-order the game on either platform, you get to play Call of Duty: Modern Warfare 2 for five continuous days.

At the Call of Duty League tournament held over the weekend, developer Infinity Ward also teased a new multiplayer map called Grand Prix. As the name suggests, the map is set on a race track, teeming with fast cars, a Ferris wheel, and engulfing flames resulting from fuel leakage. The Call of Duty: Modern Warfare II map is set at night time and will be playable in the upcoming beta period.

Call of Duty: Modern Warfare 2 launches on October 28 across PS5, PS4, Xbox Series S/X, Xbox One, and Windows PC via Battle.net. Further details on the same will be revealed on the Call of Duty: Next digital event, set for September 15.




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