After a long struggle and several concessions, Microsoft finally got the approval of the European Union.
Microsoft’s purchase of Activision Blizzard is still uncertain, but it is slowly starting to get its resolution. There is still a long way to go before the Redmond giant can convince UK and US regulators to approve the acquisition, but the Xbox console maker scored a major victory in its efforts after getting the green light from the European Commission.
The European Union approved Microsoft’s $69 billion acquisition of Activision Blizzard after the giant promised to make certain concessions. “Approval is conditioned on full compliance with the commitments accepted by Microsoft”says the European Commission in a press release.
The commission’s concerns were satisfied by Microsoft’s concessions, which mostly concerned cloud gaming services. This regulatory body believes that the acquisition will do no harm competitiveness on the market consoles, as well as subscription services, but it was feared that the agreement would greatly affect the growth and innovation of the cloud gaming market. The commission was also concerned that Redmond would make Activision games exclusive to its streaming platform, which would, by implication, make Windows’ position unfair.
To assuage the commission’s concerns, Microsoft agreed to allow consumers in European countries to stream current and future Activision titles on any cloud gaming platform they choose for the next 10 years. Also, the company has given the same 10-year guarantee to existing gaming services like GeForce Now and PSN Now – at least when it comes to Europe.
They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.
[4/5]
— Competition & Markets Authority (@CMAgovUK)May 15, 2023
Microsoft is pleased with the Commission’s decision, but the fight remains unresolved and undoubtedly all efforts will now be focused on the US and the UK. The UK’s Competition and Markets Authority reached the same conclusions as the European Commission on how the merger would harm cloud gaming. However, this British body said after the EU’s decision that the accepted concessions do not satisfy its concerns, and that it continues to block the deal.
On the other hand, the US Federal Trade Commission filed a lawsuit to prevent the purchase. The FTC’s remarks are somewhat more extensive than the case in the EU and the UK, but as the dispute will be in court only at the beginning of August, we have to wait a few months and see if the European approval has any weight with American regulators, especially after promising to The Call of Duty franchise isn’t going anywhere.
The EU gave the green light: Microsoft can buy Activision, but under certain conditions
(WORLD)