Microsoft will receive EC approval to take over Activision Blizzard?
Reuters sources at European Commission fortressthat the regulatory agency is unlikely to require Microsoft to dispose of any assets in order to get approval for the $69 billion acquisition of Activision Blizzard King. This decision would allow Microsoft to come closer to finalizing the acquisition, which has been targeted by the US Federal Trade Commission (FTC), the UK Competition and Markets Authority (CMA) and the European Commission since its announcement in January 2022.
According to the report, the EC would allow Microsoft to address any regulatory concerns by providing long-term licensing deals to competing companies and platforms. The move would ease antitrust concerns surrounding the merger, which initially sparked fears of potentially limiting access to successful cross-platform titles such as Call of Duty. Antitrust laws are laws introduced and enforced by market regulatory agencies to prevent monopolization or attempted monopolization by one entity or service provider.
Microsoft has previously stated that it will not budge under pressure to sell the franchise Call of Duty. Last month, Microsoft CEO Brad Smith raised the issue with European Union regulators, stating that it is “not feasible or realistic to think that one game or one piece can be isolated from the rest.” Smith cited Sony’s 20-year dominance as a leader in the console market, arguing that blocking Microsoft’s merger would be counterproductive and would only strengthen Sony’s grip on the EU market.
Microsoft has also been vocal about its intention to maintain competition in the market and solve regulatory problems by working with other players in the market. A Microsoft spokesperson told Reuters that “…a commitment to grant long-term, 100% equal access for Sony, Steam, NVIDIA and others preserves the benefits of the deal for gamers and developers and increases competition in the marketplace.”
Bypassing EC regulatory concerns is just one battle in Microsoft’s multi-front war. In December 2022, the FTC filed a lawsuit against the Redmond giant, citing Microsoft’s ability to downgrade Activision features to the detriment of both competitors and consumers. Microsoft is also dealing with investigations by the UK’s CMA, which said the merger could lead to concerns about competition between hardware and software companies. Microsoft publicly dismissed the CMA’s previous decision, claiming instead that the CMA relied “on Sony’s self-deprecating statements” and accepted the Japanese company’s complaints without “an appropriate level of critical consideration.”
Source:
Own study/TechSpot
