A judge is making Sony reveal its PS5 exclusivity deals to Microsoft
Courting intrigue
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An Administrative Law Judge from the Federal Trade Commission (FTC) has upheld parts ofMicrosoft’s subpoena ofSonyInteractive Entertainment (SIE). This means that the latter will be compelled to reveal documents outlining its exclusivity deals.
In preparation for itslegal battlewith the FTC on antitrust grounds, Microsoftdemanded accessto various documents belonging to Sony in an effort to build a case. Microsoft’s proposed acquisition of ActivisionBlizzardhas drawn concern from both the FTC and theUK government, who fear that the acquisition will lead to exclusivity deals that might reduce competition in the video games market - breaching antitrust laws.
Microsoft is in the process of building an argument to allay these fears. In addition to signing ahistoric dealwith Nintendo to bringCall of Dutyback to their platforms, Microsoft subpoenaed documents from Sony, in order to use the latter’s own exclusivity deals to strengthen its legal position.
In acourt orderdated February 23, it was ruled that “SIE’s Motion [to quash the subpoena] is granted in part and denied in part.” Though this may seem pretty ambiguous, the order did make a very important assertion in the case, stating that “the nature and extent of SIE’s content licensing agreements are relevant to… allegations of exclusivity arrangements between video game console developers and video game developers and publishers.”
Sony’s legal counsel attempted to argue that the sheer burden of reviewing these documents made the process unmanageable, however, the order countered by stating that “the alleged burden of having to review an excessive volume of contracts is materially decreased because… the applicable date range will be limited to January 1, 2019 to the present.”
Order up
That being said, parts of Sony’s motion to quash were upheld, meaning that the order isn’t a complete legal victory for Microsoft. Microsoft made a curious request for documents pertaining to performance reviews of Sony President and CEO Jim Ryan, as well as those who report directly to him. This request caused Sony to accuse Microsoft of “obvious harassment”, back in February, stating that “this is not an employment case” (via Eurogamer).
In addition, Microsoft had originally angled for access to the last 10 years of exclusivity documents, but Judge Chappell granted Sony’s request to limit the range of documents that Microsoft would have access to, ensuring that the range of available data would only go back to 2019.
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However, for the purposes of Microsoft’s lawyers, this three-year window is likely to be more than enough to allow them to strengthen their legal defenses in advance of the impending battle with the FTC.
It’s still early days, however, and it remains to be seen as to exactly how the case will shape out over the coming year. What is undeniable, however, is that the outcome of this case will have wide-ranging ramifications for the video games industry as a whole.
An editor and freelance journalist, Cat Bussell has been writing about video games for more than four years and, frankly, she’s developed a taste for it. As seen on TechRadar, Technopedia, The Gamer, Wargamer, and SUPERJUMP, Cat’s reviews, features, and guides are lovingly curated for your reading pleasure.
A Cambridge graduate, recovering bartender, and Cloud Strife enjoyer, Cat’s foremost mission is to bring you the best coverage she can, whether that’s through helpful guides, even-handed reviews, or thought-provoking features. She’s interviewed indie darlings, triple-A greats, and legendary voice actors, all to help you get closer to the action. When she’s not writing, Cat can be found sticking her neck into a fresh RPG or running yet another Dungeons & Dragons game.
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