The Federal Trade Commission's Request for Documents from Microsoft and Activision-Blizzard: A Legal Battle.
The Federal Trade Commission (FTC) is currently investigating the merger of Microsoft and Activision-Blizzard. However, the investigation has hit a roadblock as Microsoft and Activision-Blizzard are resisting the FTC's request for specific documentation. An overview of the case, the judge's order, objections, and responses will all be covered in this article. And finally, highlight the significance of complying with discovery requests in legal proceedings.
Background of the Case
Microsoft and Activision-Blizzard announced their merger in January 2022, and the FTC began investigating the merger shortly after. The FTC requested specific documentation from both companies to aid in the investigation. However, Microsoft has been uncooperative, declining to produce anything for 24 requests.
Microsoft and Activision-Blizzard's counsel have opposed the motion, claiming that the requests are repetitive and excessively burdensome. They argue that the complaint counsel has already received 17 million pages of data in a massive second request.
The Judge's Order
Administrative Law Judge Michael D. Chappell has instructed Microsoft and Activision-Blizzard to comply with all of the complaint counsel's requests for production of documents. The documents must be dated up to and including February 28, 2023, and must be delivered by April 21, 2023.
Respondents must collaborate with complaint counsel to modify the technology used to locate and produce relevant documents. If they are unable to find a solution, Microsoft and Activision-Blizzard must employ the search term methodology recommended by the FTC.
Respondents are not required to provide duplicate documentation. No party may rely on or submit any document that was not discovered in this case as evidence.
ALJ Chappell denied a portion of the FTC complaint counsel's motion because Activision-Blizzard agreed to produce the documents.
Here's a summary of Administrative Law Judge Michael D. Chappell's order regarding Microsoft's objections, which he deemed "unpersuasive."
- Microsoft and Activision-Blizzard must comply with FTC's document requests
- The document date range is up to Feb 28, 2023
- Both companies must deliver the requested documents by April 21, 2023
- Respondents must work with complaint counsel to modify document search technology
- If no solution is found, Microsoft and Activision-Blizzard must use FTC's search term methodology
- ATVI and MSFT claim the methodology is too burdensome and expensive
- Duplicate documents do not have to be produced, per prior agreement
- No document not discovered in this case can be submitted as evidence
Objections and Responses
According to an objection filing from Microsoft and Activision-Blizzard, the companies must now comply with 81 requests for production made by the FTC's complaint counsel. Both companies claim that the far-reaching requests are not calculated to produce useful information.
Microsoft and Activision-Blizzard's counsel have opposed the motion and claimed that the requests (known as RFPs in this context) are "duplicative and unduly burdensome" because they would necessitate the companies to "re-review millions of documents previously deemed least relevant."
Significance of Complying with Discovery Requests
The order from Administrative Law Judge Michael D. Chappell represents a significant advancement in the FTC's investigation of the Microsoft and Activision-Blizzard merger. The companies must now comply with the complaint counsel's request for production of documents and provide them by April 21, 2023.
This case highlights the significance of complying with discovery requests in legal proceedings and the consequences of failing to do so. Failure to comply with discovery requests can result in sanctions, adverse judgments, or even dismissal of the case.