A few weeks past the U.K.’s Competition & Markets Authority blocking of Microsoft’s proposed $68.7 billion acquisition of Activision Blizzard, its EU counterpart – the European Commission (EC) – has granted approval.
That approval, however, comes with some specific conditions that Microsoft must fully comply with to address the competition concerns raised.
The investigation found Microsoft’s acquisition could potentially harm competition in two key areas – the distribution of console and PC video games (including multi-game subscription services and cloud game streaming services), and the supply of PC operating systems.
The group concluded Microsoft’s position in the distribution of games through cloud game streaming services would likely lead to a reduction in competition. It would also strengthen Microsoft’s position in the market for PC operating systems.
Interestingly they say Microsoft would have “no incentive” to withhold the distribution of Activision’s games from Sony – including within the European Economic Area (EEA). They add that even if Microsoft were to withdraw Activision’s games from the PlayStation, it would not significantly harm competition in the console market.
It’s expected Activision, even without the acquisition, will not make its games available for multi-game subscription services that could cannibalize sales of individual games.
The EC is concerned Activision’s popular games could drive the growth of cloud game streaming, and if those games were made exclusive to a service like Game Pass Ultimate, it would impede competition.
Microsoft could also potentially strengthen the position of its Windows operating system in the market by hindering or degrading the streaming of Activision’s games on PCs using other operating systems.
To address these concerns, Microsoft has to license popular Activision Blizzard games automatically to competing cloud gaming services allowing consumers to play these games on any device they choose.
The deal still needs to be cleared by authorities in the U.S., Australia, China, South Korea, New Zealand, Saudi Arabia, Brazil, Chile, Serbia, Japan, South Africa and more.
Source: Variety
