EU Regulators Approved Microsoft's Activision-Blizzard Acquisition

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Microsoft Activision-Blizzard Approval

 

In an anticipated yet surprise win for Microsoft, EU Regulators have approved the proposed acquisition of Activision-Blizzard by Microsoft. However, it is not a completely free lunch for Microsoft. The regulators have imposed some conditions. 

In a nutshell, the regulators found:

  • Microsoft would have no incentive blocking Activision's games from Sony's PS Consoles
  • In a scenario where Microsoft did withdraw Activision's games from PlayStation Console, it would not harm Sony in a significant way

Regulators also put certain conditions for the merger to be approved:

  • 10-year commitment for CoD to be on PlayStation
  • Gamers in EU would get a free license for all current and future Activision's Games for the Cloud-Streaming Service of their choice provided they already own the license of those games.
  • Cloud Streaming services would also be given free licenses to stream Activision's Games in EU countries

The condition surrounding "Cloud Streaming Service of Choice" is a bit vague and could be a potential headache for Microsoft in the future. 

The Regulators in UK has blocked the merger fearing a possible monopoly in the cloud gaming by Microsoft. FTC in United States has raised similar concerns as well. In the light of these hurdles, EU's approval can still be considered a breath of fresh air for Microsoft as its lawyers are bracing up to challenge the decision of CMA in UK while also trying to ensure they get a favorable decision in their own backyard. All in all, it is still a long road to success for Microsoft and may end up being too little too late in the long run.


Sources:

European Commission


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