Microsoft’s Acquisition of Activision Blizzard Was Extended by the EU

November 10, 2022 By Prelo Con

(Image Credit Google)

The proposed acquisition of Activision Blizzard by Microsoft is currently the subject of a thorough investigation by the European Union Commission. The deal could "significantly reduce competition" in the gaming industry, as we've seen in other countries, and give Microsoft the power to "foreclose access to Activision Blizzard's console and PC video games," like Call of Duty. The Commission notes that Microsoft could decide to use "foreclosure methods" (i.e., not put the games on competing services) or "degrade the terms and conditions" for access, but is particularly concerned about the potential effects on streaming and subscription services "in particular." [caption id="attachment_60508" align="aligncenter" width="1600"] Activision Blizzard Acquisitionq

Image credit: thehindu[/caption] All of which is to imply that the alarm is going off over anti-competitive behaviour. Regarding the proposed acquisition's effect on the PC market, the Commission did make an odd aside by stating that it "may diminish competition on the market for PC operating systems." In essence, it claims that the combination of Windows, Game Pass, and Activision Blizzard's games "may deter customers from purchasing non-Windows PCs." That's a fairly recent one, and it may bring back some bad memories for Microsoft, which has frequently had to argue against Windows' hegemony in the marketplace over the years. However, it is difficult to argue that Microsoft faces significant competition in the OS market from casual gamers and users. Bobby Kotick, CEO of Activision Blizzard, wrote an open letter to the team in response to the decision. "As we said when we announced our merger, this is a long process" writes Kotick. "We have already received approvals from countries including Brazil [...] We continue to work cooperatively with regulators in other jurisdictions, and the process is moving along as we expected." [caption id="attachment_60924" align="aligncenter" width="1600"]

Image credit: pcgamer[/caption] Kotick notes that due to its scale "regulators are trying to better understand the games business" and that Activision Blizzard "will continue to cooperate with the European Commission where, in the countries they represent, we have many employees." He ends by saying that "we continue to expect [the deal] to close in Microsoft’s current fiscal year ending June 2023" and this will allow the publisher to "better compete", which is quite amusing. If Modern Warfare 2's tremendous launch numbers are anything to go by, Kotick and crew are doing just fine competing.

By Prelo Con

Following my passion by reviewing latest tech. Just love it.

Microsoft’s Acquisition of Activision Blizzard Was Extended by the EU

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