Brussels:
The EU on Monday gave the green light to Microsoft’s $69 billion takeover bid for US video game giant Activision Blizzard, just weeks after Britain’s competition regulator blocked the deal, putting it at risk.
The deal is also under threat in the US giant’s homeland, where last year the Federal Trade Commission launched legal proceedings to block one of Washington’s largest-ever interventions to halt tech industry consolidation.
Xbox owner Microsoft launched its massive bid for Activision Blizzard early last year to create the world’s third-largest gaming company after China’s Tencent and Japan’s PlayStation maker Sony.
Activision Blizzard’s hit titles also include “Candy Crush” and “World of Warcraft”. If it goes through, it will be the biggest deal ever in gaming if it goes through.
The European Commission, the bloc’s powerful antitrust authority, said the approval was “conditional on full compliance with Microsoft’s commitments.”
“The commitments fully address the competition concerns identified by the commission and represent a significant improvement for cloud gaming compared to the current situation,” it added in a statement.
The European Commission said that if Microsoft delivers on its promises, it will allow gamers to stream Activision’s titles on all cloud gaming streaming services operating in Europe.
“The European Commission has required Microsoft to automatically license popular Activision Blizzard games to competing cloud gaming services,” said Microsoft Vice President Brad Smith.
“This will be global and will enable millions of consumers around the world to play these games on any device they choose.”
But unless Microsoft wins an appeal against the block by Britain’s Competition and Markets Authority (CMA) last month, experts say it’s game over for the bid.
The CMA blocked the offer out of concerns it could kill off competition in the burgeoning cloud gaming market and lead to less choice for UK gamers in the future.
“If Microsoft doesn’t win the appeal in the CAT, it can’t go ahead with the acquisition, even if the European Commission now approves it,” said Anne Witt, a professor of antitrust law at EDHEC business school in France.
“Unless, of course, Microsoft decides to leave the UK market. But that seems unlikely,” she told AFP earlier this year.
If a regulator in a particular country does not approve an acquisition, the merged company would not be able to serve that market.
Although Britain is a smaller market compared to the European Union and the United States, millions use Microsoft products, including the ubiquitous Windows operating system.
This is the first major decision between regulators in the EU and Britain since the UK’s exit from the bloc in early 2021. Japan has already cleared the acquisition and legal proceedings are still underway to authorize the merger in the United States. to fight. .
Cloud gaming boom
Technology companies, including Microsoft, want a share of the growing demand for “cloud gaming” as gamers move from physical consoles to subscriptions and virtual access, which allow users to play games through devices such as mobile phones and tablets.
However, the CMA pointed out in an analysis that Microsoft already accounts for between 60 and 70 percent of cloud gaming services.
Microsoft has urged regulators that the merger does not harm competition, promising it would give access to Activision’s games to an additional 150 million people.
It has already struck deals to bring the “Call of Duty” to the Nintendo console and cloud game streaming services from Nvidia, Boosteroid and Ubitus.
Sony has claimed the deal will give Microsoft the power to limit rivals’ access to the popular franchise, but Brussels said in Monday’s decision it felt Microsoft “would have no reason to deny Activision’s games to Sony.” to distribute”.
Microsoft’s commitments to allay EU fears include a free license for European users to stream all current and future Activision Blizzard PC and console games for which they have a license through all cloud game streaming services.
“In such a fast-growing and dynamic industry, it is crucial to protect competition and innovation. Our decision is an important step in that direction,” said EU competition chief Margrethe Vestager.
The US Federal Trade Commission filed a lawsuit last year to block the acquisition, because Microsoft had previously acquired smaller gaming companies to get the games exclusive.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)