Subj : A Judge is making Sony reveal its PS5 exclusivity deals to Micros
To   : All
From : TechnologyDaily
Date : Thu Mar 02 2023 16:00:04

A Judge is making Sony reveal its PS5 exclusivity deals to Microsoft

Date:
Thu, 02 Mar 2023 15:53:12 +0000

Description:
The FTC has upheld parts of Microsofts subpoena of Sonys confidential 
documents while quashing other, weirder requests.

FULL STORY
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An Administrative Law Judge from the Federal Trade Commission (FTC) has 
upheld parts of Microsofts subpoena of Sony Interactive Entertainment (SIE). 
This means that the latter will be compelled to reveal documents outlining 
its exclusivity deals. 

In preparation for its legal battle with the FTC on antitrust grounds, 
Microsoft demanded access to various documents belonging to Sony in an effort 
to build a case. Microsofts proposed acquisition of Activision Blizzard has 
drawn concern from both the FTC and the UK 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 a historic deal with Nintendo to bring Call of Duty back 
to their platforms, Microsoft subpoenaed documents from Sony, in order to use 
the latters own exclusivity deals to strengthen its legal position. 

In a court order dated February 23, it was ruled that SIEs 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 SIEs content licensing agreements are 
relevant to allegations of exclusivity arrangements between video game 
console developers and video game developers and publishers. 

Sonys 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 (Image credit: Sony / 
Guerrilla) 

That being said, parts of Sonys motion to quash were upheld, meaning that the 
order isnt 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 Sonys 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. 

However, for the purposes of Microsofts 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. 

Its 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. PS5 lawsuit claims Sony knowingly hid a 
major defect in the console



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Link to news story:
https://www.techradar.com/news/a-judge-is-making-sony-reveal-its-ps5-exclusivi
ty-deals-to-microsoft


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