The Federal Trade Commission (FTC) has scheduled a five-day evidentiary hearing starting this week to address its legal efforts to prevent Microsoft’s acquisition of Activision Blizzard. According to a court filing on Tuesday, witnesses planned for the hearing include Microsoft CEO Satya Nadella and Activision Blizzard CEO Bobby Kotick.
The FTC is seeking a preliminary injunction to halt Microsoft’s $69 billion acquisition of Activision Blizzard. Microsoft has argued that if the court grants the injunction, it would effectively terminate the deal, which has a deadline of July 18. Additionally, Microsoft would be liable to pay a $3 billion termination fee.
The hearing is scheduled to commence on June 22 and continue until June 29.
As part of its argument against Microsoft’s acquisition of Activision Blizzard, the Federal Trade Commission (FTC) has contended that the transaction would grant exclusive access to Activision games on Microsoft’s Xbox video game console. This exclusivity, according to the FTC, would disadvantage competing consoles such as Nintendo and Sony Group’s PlayStation, effectively excluding them from accessing Activision’s game library.
In May, Microsoft’s bid to acquire Activision Blizzard, the maker of the popular video game franchise Call of Duty, was approved by the European Union (EU). However, the takeover was blocked by British competition authorities in April.
As part of the ongoing legal proceedings, the Federal Trade Commission (FTC) has summoned Microsoft CEO Satya Nadella to testify regarding various aspects of the video game industry, Microsoft Gaming’s strategy and business, as well as the planned acquisition of Activision. On the other hand, Microsoft is also calling Nadella as a witness to testify on similar topics, likely to present their perspective and arguments in support of the acquisition and address any concerns raised by the FTC.
In addition to Satya Nadella, Activision Blizzard CEO Bobby Kotick is expected to testify during the evidentiary hearing. Kotick will provide insights into Activision’s gaming business, future plans, and strategies.
The witness list also includes James Ryan, CEO of Sony Interactive Entertainment, likely to provide perspective on the impact of the acquisition and competition in the gaming industry. Dov Zimring, former director of product management for Google’s now-closed gaming service Stadia, will likely share insights related to the industry and market dynamics.
Furthermore, two executives from Nvidia, a prominent technology company known for its graphics processing units (GPUs), are scheduled to testify. Their testimonies might touch on the intersection of gaming and technology.
Microsoft executives are also expected to testify, including Chief Financial Officer Amy Hood, Microsoft Gaming CEO Phil Spencer, and Microsoft Gaming CFO Tim Stuart. Their testimonies will likely cover various aspects of Microsoft’s gaming business, including financial implications, strategic considerations, and the potential impact of the acquisition.
Additionally, a number of expert witnesses are scheduled to provide their insights and analysis related to the case.