Microsoft's acquisition of Activison Blizzard

[Plextorage]

Is it over yet?

 

[Nhomnhom]

Is it over yet?

Yes. It's over for PlayStation.

 

[Puff]

The CMA published new documents:

• Notice inviting comments on submission received on material change of circumstances/special reasons (3 pages)
• Microsoft submission (34 pages)

Highlights from the notice:

In response to that notice, Microsoft has made a series of submissions to the CMA about developments since the publication of the Report, including the acceptance by the European Commission of commitments offered by Microsoft and the agreement recently entered into between Microsoft and Sony. These submissions state that there has been a material change of circumstances since the Report or that there are otherwise special reasons for reaching a different decision on the remedies question. Microsoft provided its final and consolidated submission on these matters on 25 July 2023. A non- confidential version of this submission has been published on our website today.

Submissions under section 41(3) of the Act regarding material change of circumstance or special reasons are very rare. It is not a usual part of the CMA's process during a remedies implementation period to consult on submissions received in response to a consultation on a proposed undertaking or order. However, in light of the guidance provided by the Competition Appeal Tribunal on this specific case, the Inquiry Group has decided it is appropriate to do so in this case.

Any person wishing to comment on Microsoft's submissions is now invited to do so. In particular, the CMA welcomes submissions on whether or not there has been a material change of circumstances since the preparation of the Report and/or that there is a special reason for the CMA to take remedial action other than as proposed in the Report (and as set out in the proposed Order previously consulted upon), on the bases set out in Microsoft's submission.

Representations made in response to this Notice should reach the CMA by the end of 4 August 2023. Representations should be made in writing and should be sent by email to: [email protected].

The Inquiry Group will have regard to any such representations received by the deadline stated above in making its final decision on remedial action. The statutory period for the CMA either to accept final Undertakings or make a final Order ends on 29 August 2023.

 

[Nhomnhom]

Jim Ryan with the last minute save to get the deal approved, let's hope MS will at least thank him once it's officially greenlit.

 

[FatKaz]

Jim Ryan with the last minute save to get the deal approved, let's hope MS will at least thank him once it's officially greenlit.

CMA came out against the remedies EC accepted.

Jim ryan signing a contract for console on cod would not have effected any of the concerns that the CMA had for cloud, CMA didn't even maintain the console concerns.

If this was the same CMA that had a backbone they would have thrown this in the trash, what is obvious is they are looking for any excuse to approve it regardless of what Jim does.

 

[kuzon]

We can email our concerns to the cma by the 4th august .

That’s something we can do lol

 

[On Demand]

What was the reason to pause the appeal and Sony signing a contract if MS still believes the CMA won’t approve easily?

 

[FatKaz]

What was the reason to pause the appeal and Sony signing a contract if MS still believes the CMA won’t approve easily?

So they wouldn't have to still fight the appeal for the old deal, whilst they trip over themselves to approve the new deal.

 

[Gods&Monsters]

Jim Ryan with the last minute save to get the deal approved, let's hope MS will at least thank him once it's officially greenlit.

Jim was forced to sign the deal at the last minute on a Sunday. I don't blame him at all and it shouldn't affect the CMA thing anyway because Microsoft had until June to notify the CMA of the "new deal".

The Sony thing happened several weeks later after the CMA already decided to stop the appeal. They announced it the week before so it's impossible Sony changed anything?

If the CMA accepts this then you know something is wrong. The dates don't match.

 

[On Demand]

So they wouldn't have to still fight the appeal for the old deal, whilst they trip over themselves to approve the new deal.

I know the backhanded maneuvers CMA and MS played to pause the appeal. But it seems the CMA is still giving MS a difficult time?

 

[Eternal_Wings]

I know the backhanded maneuvers CMA and MS played to pause the appeal. But it seems the CMA is still giving MS a difficult time?

I honestly don’t think this deal will be blocked. Maybe some concessions will be included but nothing major I would assume.
It would be the biggest surprise of the year it the would fall through in the end. But don’t count on it.

 

[FatKaz]

I know the backhanded maneuvers CMA and MS played to pause the appeal. But it seems the CMA is still giving MS a difficult time?

Not really seeing anywhere in that article where CMA is giving them a difficult time tbh. Looks like they are just following their process which is all a charade anyways.

 

[On Demand]

Yeah just that MS is still giving pleading like reasons on why the deal should go through. If the CMA is on your side now there’s no restrain to keep explaining and making excuses.

Could all be a show at this point.

 

[Ezekiel]

Seeing how MS is using the 10 year binding deal with Sony as an argument for the CAT appeal pause and 'special reasons', I think it's likely that Sony got the upper hand in that negotiation (favourable terms for Sony). At the minimum, they are back to a 'regular' 70/30 revenue split.

So either the deal is blocked or goes through, Sony will be content.

Sort of like how Nvidia was first against the deal, and then changed their stance. A company doesn't just do that unless they have something to gain.

We might never know the content of that deal though, unless it gets released through a regulatory process.

 

[Nhomnhom]

Seeing how MS is using the 10 year binding deal with Sony as an argument for the CAT appeal pause and 'special reasons', I think it's likely that Sony got the upper hand in that negotiation (favourable terms for Sony). At the minimum, they are back to a 'regular' 70/30 revenue split.

So either the deal is blocked or goes through, Sony will be content.

Sort of like how Nvidia was first against the deal, and then changed their stance. A company doesn't just do that unless they have something to gain.

We might never know the content of that deal though, unless it gets released through a regulatory process.

Sony got the upper hand so that they could get back to regular third-party fees?

They used the "upper hand" to get absolutely nothing in return?

 

[Gods&Monsters]

So MS is going to use the FTC and Sony deal that happened a month later to say this is the "new deal"? The CAT judge asked CMA if they were stopping the appeal because of the FTC and they said it had nothing to do with it. Well now MS is saying FTC changed everything

I don't understand anything anymore.

 

[FatKaz]

So MS is going to use the FTC and Sony deal that happened a month later to say this is the "new deal"? The CAT judge asked CMA if they were stopping the appeal because of the FTC and they said it had nothing to do with it. Well now MS is saying FTC changed everything

I don't understand anything anymore.

Yeah it's bizzarre, have they even submitted a new deal to the CMA yet? I though that was the play for MS to get this approved?

Looking at the quote from the CMA, their whole flip flop is based on whatever lip service MS gave to them about the new deal

"What the CMA has sought to do in its skeleton argument is articulate that based upon the discussions to date, both sides, Microsoft and the CMA, have confidence that Microsoft notifying a restructured transaction, is capable of addressing the concerns the CMA has identified,"

But MS are trying to tread old ground by applying pressure from other jurisdictions decisions and using those trash 10 year cloud deals to get it approved.

Edit:

Looking at the MS response they are yet to submit the new deal.

In addition, as the CMA is aware from its confidential discussions with the Parties,
Microsoft is in the advanced stages of putting forward a proposal to modify the relevant
merger situation (RMS) that the FR addressed. The modified RMS would be different
such that it would amount to a new RMS within the meaning of section 33 of the Act. In
circumstances where a new RMS supersedes the RMS in relation to which the FR was
produced, and can deal with the concerns identified in the FR, a Final Order which had
the effect of prohibiting or qualifying the completion of the RMS would be plainly
unjustified

 

[Cool hand luke]

Wow, if it wasn't clear already that Microsoft execs were huffing their own farts, this submissions cements it. Pointing to Verstager's greased palms, which THEY greased, and shouting "new circumstances" with the expectation of overturning a different jurisdiction's verdict is top level arrogance.

How they got the CMA to succumb should be studied, but nothing here is above board.

 

[Cool hand luke]

So MS is going to use the FTC and Sony deal that happened a month later to say this is the "new deal"? The CAT judge asked CMA if they were stopping the appeal because of the FTC and they said it had nothing to do with it. Well now MS is saying FTC changed everything

I don't understand anything anymore.

If the CMA is allowed to consider the evidence in the FTC trial, they should move to start breaking up Microsoft. That was the clearest display of anticompetitive behaviour most of us will ever see, given most company execs aren't dumb enough to put it into print like Matt Booty. It's a shame it was aired in a kangaroo court and not a court of law.

 

[nongkris]

CMA just needs to get this charade over with. They let MS outclass and outplay them with absolutely no intention of submitting a new deal. Let’s welcome our new trillion dollar video game overlords