On Monday, European Union regulators approved Microsoft’s proposed acquisition of Activision Blizzard for $69 billion after continuous delays. Microsoft’s approval is a huge win after the Competition and Markets Authority blocked the deal last month. CMA’s concern was that it would reduce competition in the cloud gaming market following the commission’s preliminary investigation. The regulators questioned whether Microsoft would take Activision games and keep them solely on its platforms. Nevertheless, the commission accepted Microsoft’s proposed remedies on Monday. The agreement entails Microsoft providing ten-year free licenses to European consumers who buy Activision PC and console games and want to stream them on other cloud gaming providers.
Microsoft’s & Activision Blizzard’s Merger Approval Reaction
Our CEO Bobby Kotick has shared an update on the European Commission's decision regarding our deal with @Microsoft.
Read the full update here: https://t.co/11aYt02wUv
— Activision Blizzard (@ATVI_AB) May 15, 2023
The move to establish a Microsoft & Activision Blizzard merger has received a setback from several regulators, including PlayStation gaming system maker Sony. Regulators worldwide are investigating whether Microsoft’s acquisition of Activision will hinder competition in the console and cloud gaming markets. US Federal Trade Commission also opposes the takeover and is suing to stop it.
Margrethe Vestager, the EU’s competition commissioner, stated that the judgment would deliver Activision’s games to many more devices and consumers than before. In addition, she said, with the commitments offered by Microsoft, cloud game streaming services will be able to stream these games for the first time. This will enhance competition and opportunities for growth. Upon its acceptance by the European Commission today, Microsoft will have the authority to set the terms and conditions for the next decade in the market.
Founded in 1979, Activision Blizzard is the leading worldwide developer, distributor, and publisher of interactive entertainment and products on consoles, mobile, and Personal Computers. It has produced big console and PC games, including Call of Duty and Candy Crush Saga. If Microsoft wins its appeal against the CMA in the UK’s competition appeal tribunal, the EU decision will help the US tech giant. According to some legal experts, the regulator might struggle to prevail against Microsoft based on historical precedent.