The $69 Billion Microsoft-Activision Deal Now Faces EU Probe
The EU merger watchdog has set a deadline of March 23 for its phase 2 investigation.
Microsoft¡¯s proposed takeover of Activision-Blizzard for $69 billion is now facing an in-depth EU probe after regulators show concern for the blocking access to popular titles such as Call Of Duty to other consoles/platforms, reveals a Bloomberg report.
Reuters
The EU merger watchdog has set a deadline of March 23 for its phase 2 investigation. And their fear might be a valid one considering after acquiring Activision-Blizzard, Microsoft could own some of the popular franchises in gaming history, including World of Warcraft, Guitar Hero, and others, while also making Microsoft the third largest game company in the world, adding more games to its GamesPass library along the way.
The deal is already surrounded by concerns and scrutiny from antitrust agencies around the world. Microsoft last month accused the UK's Competition and Markets Authority of relying only on rival Sony¡¯s ¡®self-serving¡¯ inputs in its discussion.
The acquisition is also being reviewed by the US Federal Trade Commission to better understand how it could affect the workers.
Microsoft in a statement has ensured that it would work with the European Union to address any valid concerns in the marketplace. They also have highlighted that Sony has been worried about the Call of Duty franchise, but they've said that they're committed to keeping making the game available on the same day on both Xbox and PlayStation.
Activision CEO, Bobby Kotick in a letter to its employees has stated that the company is working with regulators in other jurisdictions and the process is moving along as they expected. They expect the deal to close in Microsoft¡¯s current fiscal year ending June next year.
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Last month, EU asked video game developers, publishers, distributors, competing OSes and cloud service providers of the negative impacts that could be caused due to this deal. A preliminary probe revealed that the deal had the potential to drastically affect competition on the markets for the distribution of console and PC video games.
This included multi-game subscription services, cloud game streaming services and even PC operating systems. According to the EU, the deal could also give Microsoft the power to engage in foreclosure strategies with rival distributors of console video games. The commission said it sees the same risk for rival providers of PC operating systems.
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