May 16, 2023
The European Union (EU) Commission has approved Microsoft’s $69 billion purchase proposal for Activision, after earlier investigating the deal owing to concerns about competition in the console and cloud gaming businesses.
However, the EU’s approval is subject to limitations, highlighting the need of full compliance. Microsoft has made various pledges to address these concerns during the last 10 years. Notably, the digital behemoth has promised to keep Activision’s lucrative Call of Duty brand available on competing cloud gaming platforms.
As part of this agreement, European users will receive a free license to stream all present and future Activision Blizzard games to their preferred cloud game streaming provider. Furthermore, cloud gaming suppliers will obtain a complimentary license.
The regulators are concerned that Microsoft’s ownership of Call of Duty would give the corporation an unfair edge over its primary console competitor, Sony PlayStation. This action attempts to keep the playing field equal in the cloud gaming industry, where consumers access games streamed from faraway servers on a variety of devices.
While the EU has approved Microsoft’s offer for Activision, it still faces considerable obstacles. The United Kingdom, which announced its intention to oppose the transaction last month, is concerned about Activision Blizzard obtaining undue influence in the cloud gaming sector. Furthermore, the Federal Trade Commission (FTC) in the United States has launched a lawsuit to prevent the transaction. The trial is set to take place this summer.
The sources for this piece include an article in Axios.
