UK regulator wants public input on Microsoft-Activision deal

UK regulator wants public input on Microsoft-Activision deal

Microsoft’s Takeover of Activision Blizzard Faces Antitrust Review in the UK

Activision Blizzard

LONDON, July 31 (ANBLE) – Britain’s antitrust regulator on Monday called for public responses on whether Microsoft’s $69 billion takeover of Activision Blizzard, maker of video game “Call of Duty”, should be cleared ahead of a final decision by Aug. 29.

Microsoft’s bid to acquire Activision Blizzard has faced obstacles in the past, including a block by Britain’s Competition and Markets Authority (CMA) in April. However, Microsoft is now making a renewed push, citing legally-binding commitments to the European Commission and a licensing deal with Sony. They argue that these commitments have improved competition in the cloud gaming market.

The U.S. software giant has entered into agreements with NVIDIA, Boosteroid, and Ubitus, allowing them to license Activision games for a decade after the merger. Microsoft claims that this move has already had a positive impact on the cloud gaming market, further enhancing competition. In addition, their partnership with Sony, ensuring that “Call of Duty” remains on the PlayStation console for the next ten years, addresses the concerns of opponents of the merger.

To ensure transparency and gather public opinion, the CMA has invited comments on the revised proposal by Aug. 4. The regulatory body aims to reach a final decision on the deal by Aug. 29. The involvement of the European Commission and the potential for significant fines add further weight to the importance of this review process.

Microsoft’s commitment to adhere to its legally-binding agreements with the European Commission is crucial for securing approval. Any breach of these commitments would not only jeopardize European approval but also expose Microsoft to fines of up to 10% of its worldwide turnover, amounting to a staggering $19.8 billion based on 2022 turnover.

The ongoing antitrust review was prompted by concerns about the potential impact of the Activision Blizzard merger on competition in the gaming industry. Critics argue that consolidation could stifle innovation and limit consumer choice. Microsoft, however, points to its various agreements and partnerships as evidence that the merger would enhance competition rather than limit it.

The legal battles surrounding Microsoft’s bid have seen their fair share of twists and turns. The pause in the proceedings came after the U.S. Federal Trade Commission’s (FTC) unsuccessful attempt to temporarily halt the deal. Microsoft believes that the evidence that emerged during this case, which the FTC has since dropped, further strengthens their argument in favor of the merger.

As the final decision on Microsoft’s takeover of Activision Blizzard approaches, the gaming industry holds its breath. The implications of this deal are significant, not only for the companies involved but also for the future direction of the gaming market. Whether the merger proceeds or is once again blocked, the outcome is sure to shape the landscape of the gaming industry for years to come.

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