Discussing the Microsoft Activision Deal, Intel's $4M Fine, and Nvidia legal troubles with Hoeg Law (Guest Telegrams)
Added 2023-10-17 18:48:29 +0000 UTCThe next episode of Broken Silicon will see the return of Hoeg Law! We plan to heavily discuss the resulting Microsoft-Activision-Blizzard deal that has just closed, Intel's ongoing legal troubles in the EU, Nvidia's Legal Troubles in France, and whatever else you all ask us!
From the Unity Debacle to the closing of the EPIC-Apple battle - feel free to ask us ANYTHING related to AMD, Intel, Nvidia, XBOX, PlayStation, Nintendo, and gaming hardware law! This is a rare opportunity to ask law-related and legal questions.
You have ~24 hours to submit below! Be concise, respectful, and use good grammar to have your comments/questions considered.
Hoeg’s Channel: https://www.youtube.com/@HoegLaw/featured
Hoeg’s Firm: https://hoeglaw.com/
Last Episode with Hoeg: https://youtu.be/3KSlV6Jyqpc?si=ujdDRRmBR0mHN0q6
First Episode with Hoeg: https://youtu.be/1Jn69SOllqM?si=EDflXN40d6pi0ajL
https://www.reuters.com/technology/eu-re-imposes-400-mln-fine-intel-abuse-market-power-2023-09-22/
https://www.reuters.com/technology/why-is-france-raiding-graphics-card-company-2023-09-29/
Comments
Imo this also includes stuff like AMD not allowing X300 outside of embedded products etc since they would lose the sale of the chipset etc. But the death of nforce is an interesting demarcation into the tivo-izing that’s taken place.
capn_hector
2023-10-18 18:04:40 +0000 UTCDo you think nvidia is in any risk of antitrust action over things like tightly controlling the release of product from third party supply chains to coordinate the maintenance of MSRP pricing and prevent prices from falling, or in general from the tivo-izing of the product that intel/AMD/nvidia have done over the years? Things like the ABIT dual celeron mobos or nforce chipsets or even dual-vram cards are no longer possible anymore since it would break the product segmentation, and this reflects a real shift in power, partners are not partners anymore and it seems massively anticompetitive for AMD and nvidia to literally be telling their “partners” what products they’re allowed to build and when to release shipments.
capn_hector
2023-10-18 18:01:25 +0000 UTCGoing backwards a month or so to the Unity drama... were any of the new terms of service calling for retroactive payments even legal or enforceable in the first place? What legal options do developers have when a game engine's publisher engages in shenanigans?
Independent George
2023-10-18 16:50:56 +0000 UTCWhat’s the likelihood that Microsoft hires Jim Ryan as the new head of ABK when they get rid of the current guy that won’t be named.
Sad XTX 999
2023-10-18 16:42:47 +0000 UTCHello Tom and Hoeg, Why did the Microsoft-Activision-Blizzard have to go through so many hurdles? When everything is complete Microsoft's game studio will not be the largest one? If I'm not mistaken Sony will still have the larger studio. I've been a pro buyout because my favorite game Overwatch 2 has been massively screwed up by Bobby Kotick and I wanted him out.
Joseph Kelly
2023-10-18 13:56:10 +0000 UTCDo you think we are moving into a "new era" of antitrust litigation in the tech sector, or is this just a continuation of an older trend?
qhfreddy
2023-10-18 08:13:21 +0000 UTCDo you think that Unity reserved the right to unilaterally change the pricing structure of the service they provided to game developers in their original contracts? How would you assess the legality of such unilateral changes?
qhfreddy
2023-10-18 08:12:46 +0000 UTCHow do you see vastly different legal systems that exist around the globe affecting companies in the tech/gaming sector, given how many of these companies operate globally? Do you think strong consumer protection in some regions is spilling over to others?
qhfreddy
2023-10-18 08:11:18 +0000 UTCHow would you assess the enforceability of such marketing claims in different jurisdictions?
qhfreddy
2023-10-18 08:08:41 +0000 UTCDo you think that the practices of DRAM and maybe also NAND FLASH vendors such as Samsung and Hynix, where they often together sharply cut supply when they feel prices have become too low and cause a sharp upturn in DRAM and FLASH prices, could be considered cartel behaviour?
qhfreddy
2023-10-18 08:07:48 +0000 UTCIn European antitrust law there is a separation between cartel practices as per Article 101 of the Treaty on the Functioning of the European Union (TFEU) and "abuse of a dominant position" under Article 102 TFEU. Is there a similar distinction in US antitrust law? Could you maybe outline the different categories and legal elements of antitrust law in the US?
qhfreddy
2023-10-18 08:05:11 +0000 UTCCan you explain the separation between the elements of a "monopoly or dominant position in the market" and "abusive conduct (by a company in a dominant position)"?
qhfreddy
2023-10-18 08:00:18 +0000 UTCAs a followup, how can the US government enforce these? Can they punish Nvidia for what 3rd parties do with their products? How can this apply to consumers selling graphics cards on eBay?
Alexandru Tudorica
2023-10-18 07:50:53 +0000 UTCHello Tom and Hoeg, recently Google announced that they commit to 8 years of Android updates on their new Pixel 8 phones. Are companies liable if they don’t own up to marketing claims like these? Especially if they aren’t present in any of the terms and conditions.
Alexandru Tudorica
2023-10-18 07:49:55 +0000 UTCHello Tom and Hoeg. I have question for both of you. Tom what led/forced intel to use anti-competetive practices before? Was their product inferior, were they just "greedy"? Hoeg can you explain to us from legal side what are anti-competetive practices and why was Intel's behavior in the past legally problematic?
QuickJumper
2023-10-18 06:48:02 +0000 UTCHello Tom and Guest, unity essentially ended their brand with their move a few weeks ago. How legal is it to change the terms/licensing that quickly only 5 months till the changes would haven taken effect. Is it possible to salvage the company or do a rebrand? Everywhere I look people are saying the games coming out in a year or two on Unity are the last ones the engine will see.
Sad XTX 999
2023-10-18 03:56:49 +0000 UTCNvidia's offices were raided by the French authorities for being "suspected of having implemented anticompetitive practices in the graphics-cards sector". If found guilty/liable, what are the chances they will have legal issues in other countries as well? Is it common for other jurisdictions to 'hop on the band wagon' and prosecute/fine companies when they have been successfully prosecuted in other countries?
Reginald Aryee
2023-10-18 03:13:15 +0000 UTCWhen it comes to the Unity fiasco, 'how legal is it' to alter a past deal years later when a game has been available for purchase for several years? Is there any precedence for this that you are aware of?
Reginald Aryee
2023-10-18 03:01:07 +0000 UTCintel has a very long and extensive anti-trust history where they stalled the cases for as long as they can so the judgment ultimately didn’t matter. How different would the tech industry look as a whole if Intel couldn’t stall and appeal judgments for years?
Benjamin Cannon
2023-10-18 03:00:07 +0000 UTCCan a game that was blocked on a platform by another platform holder by undone? I am asking as the game Final Fantasy 7 Remake is blocked from coming to Xbox by Sony. However recently we have heard that Microsoft had a meeting with Square to build FF relations ( FF14 is coming to Xbox and FF17 will come to Xbox) so I wonder what about FF7R? What's more fishy is the sequel (FF7 Rebirth) is only PS5 exclusive for about 3 months, what gives as I don't think we've seen full game exclusives this short? It's usually 6 months to 2 years.
Falto
2023-10-18 02:49:53 +0000 UTCDo you think the ambiguity and lack of legal certainty around merger authorisation criteria is an intentional move by legislators? It artificially increases the risk/cost associated with big mergers so reduces the incentive of companies to make "high market share", "likely anticompetitive" acquisitions, basically filtering out a lot of possible acquisition attempts just by discouraging companies from doing it in the first place. Moreover, fixing the criteria in law could result in the regulator having their hands tied.
qhfreddy
2023-10-17 22:25:33 +0000 UTCWith the dust on the Nvidia ARM merger having settled, how would you say your perspective has changed or been reinforced on the relevant issues? Are there any important lessons to learn from it? Do you think we at a better place with antitrust law when it comes to legal certainty and foreseeability than we were before?
qhfreddy
2023-10-17 22:17:53 +0000 UTCWith Microsoft’s recent "inflation adjusting" of Activision games on Steam, presumably pushing gamers to purchase on MS store or gamepass, we can already see monopolistic practices unfolding. Do you think that allowing this merger to go through is detrimental to options gamers have with respect to digital ownership?
bigboss69
2023-10-17 22:04:33 +0000 UTCGood to see Mr. Hoeg Law back in form! I'm wondering what your thoughts are on the upcoming Epic v Google trial. I'm thinking I might put some money on Google for that one. What do you think? Good bet? Best wishes to Mrs. Hoeg Law, too.
Vaughn Samuels
2023-10-17 21:58:36 +0000 UTCWelcome back, Mr. Hoeg. With the FTC going after Amazon for (as I understand it) a variety of price manipulation practices, including algorithmic tools to test whether they could push up prices, is there a possibility that console and PC digital game marketplaces could receive the same kinds of treatment?
Cleansweep
2023-10-17 20:21:19 +0000 UTCNow that US courts have shown there is no limit to how much they will allow monopolies to grow and consume, how soon do you think until the Microsoft-Amazon-Google merger?
coladict
2023-10-17 20:17:14 +0000 UTCI absolutely don't believe that an Nvidia AI monopoly exists, but hypothetically, what sort of behavior and standing from Nvidia would be necessary for the company to be classified as an AI monopoly? Would they have to try and acquire someone else, tenstorrent perhaps? Is there a minimum length of time of existence of an industry for a monopoly to even be possible?
FloridaMan
2023-10-17 19:19:46 +0000 UTCOn the other hand, do you think that the unintentional leaking of their case file could result in a reduction in certain penalties for some actions that would have been uncovered in a different manner?
qhfreddy
2023-10-17 19:12:43 +0000 UTCDo you think export controls on Nvidia hardware can really limit the amount of GPUs or more generally "AI tech" going into China? Will they not just find alternate routes into China?
qhfreddy
2023-10-17 19:09:41 +0000 UTCHow would you assess the competition/antitrust situation around ASML? Do you think the fact that they have to cooperate/coordinate with many other subcontractors reduces their potential to conduct themselves in an anticompetitive manner? Or do you think they are just avoiding scrutiny by not trying to push boundaries on e.g pricing or acquisitions of other firms in their supply chain?
qhfreddy
2023-10-17 19:08:10 +0000 UTCHow much legal trouble with other companies is Microsoft in for leaking their entire case file? Should Microsoft be expecting lawsuits, from whom, for what, and potentially for how much?
FloridaMan
2023-10-17 19:05:42 +0000 UTCI don't know how familiar you are with EU competition law, but given how Nvidia seems to have a stranglehold on its AIB partners, do you think they could be at risk of having relations with those and other downstream OEMs scrutinised on grounds of them being an "abuse by an undertaking with a dominant position" under article 102 TFEU? For example unfair trading practices? Do you think similar grounds could be raised in the US?
qhfreddy
2023-10-17 19:02:23 +0000 UTCGiven Microsoft's struggle with the Activision-Blizzard deal before it finally went through, how are the different companies feeling about more acquisitions? Should we be expecting more attempts to grab studios?
FloridaMan
2023-10-17 18:59:01 +0000 UTCDo you think Intel is at risk of an investor class action law suite, based on their public and investor-facing statements about execution being so consistently out of line with the reality of what is going on in the company?
qhfreddy
2023-10-17 18:54:44 +0000 UTCWhen the news says raiding a GPU company, I imagine people carting a bunch of graphics cards away. But looking at the anti-compeitive worries France has, I imagine it's more about financial documents. Being unfamiliar with the French legal system, what telltale signs is France looking for?
FloridaMan
2023-10-17 18:54:38 +0000 UTCMaybe it's just my young age, but the Intel antitrust saga in the EU seems to have gone on forever. What do you think is the reason both sides are willing to drag it out so long when the market has clearly reset from the situation back then and Intel should probably be focusing on its execution?
qhfreddy
2023-10-17 18:52:14 +0000 UTC
