Yes. It's over for PlayStation.Is it over yet?
Ideas said:The CMA published new documents:
Highlights from the notice:
- Notice inviting comments on submission received on material change of circumstances/special reasons (3 pages)
- Microsoft submission (34 pages)
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.
CMA came out against the remedies EC accepted.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.
So they wouldn't have to still fight the appeal for the old deal, whilst they trip over themselves to approve the new deal.What was the reason to pause the appeal and Sony signing a contract if MS still believes the CMA won’t approve easily?
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".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.
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?
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?
Sony got the upper hand so that they could get back to regular third-party fees?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.
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.
"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,"
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
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.