Just a couple of weeks after the UK’s top anti-trust regulators had blocked it, EU authorities have decided to greenlight the Microsoft Activision deal, wherein Microsoft has acquired the software giant.
This is the biggest deal in the software industry in over two decades, with Microsoft paying a hefty $69 billion to acquire the famed video game developer of popular franchises like Call of Duty, Crash Bandicoot, and Tony Hawk’s. The European Union authorities have deemed it just to pass the approval for the deal, thanks to Microsoft’s various commitments regarding cloud gaming.
The main point of conflict barricading this deal for the past couple of months was anti-trust regulators’ belief that Microsoft would no longer provide Sony with several of Activision Blizzard’s hit titles. The games in question are currently available to gamers on PlayStation, and the concern was that the deal would make the titles exclusive to Xbox, owned by Microsoft.
However, EU authorities believe that the Microsoft Activision deal would in no way unfairly affect the competition in the market. The regulators stated that even if Microsoft decides to pull Activision titles from PlayStation, it will not affect the competition in the gaming consoles industry.
Microsoft Activision deal was blocked by British and American regulators
The European Commission has required Microsoft to license popular Activision Blizzard games automatically to competing cloud gaming services. This will apply globally and will empower millions of consumers worldwide to play these games on any device they choose.
— Brad Smith (@BradSmi) May 15, 2023
Another major concern that supported the restriction of the Microsoft Activision deal was its impact on the relatively new yet promising sector of cloud gaming. Potentially, cloud gaming could cut down the need to own home gaming consoles and offer gamers an opportunity to play even the most sought-after titles using their tablets, mobile phones, and other portable devices. According to American as well as British regulators, this deal going through could potentially mean the end of this emerging market, with Microsoft refocusing its attention on increasing its console sales.
European Union authorities, however, refuted this sentiment, stating that Microsoft has guaranteed to provide gamers access to Activision Blizzard’s popular online games, such as Call of Duty and World of Warcraft, through cloud gaming platforms developed by other companies, such as Nvidia. However, the Microsoft Activision deal is yet to pass through the Federal Trade Commission, which has launched a lawsuit against this megamerger with a hearing scheduled on August 2.
