Microsoft and Activision Blizzard logos
Microsoft’s $68.7 billion acquisition of Activision Blizzard has been given the go-ahead by the European Fee, eradicating yet one more impediment from the deal reaching completion.
On Monday, the European Fee accepted the proposed acquisition of Activision Blizzard by Microsoft beneath the EU Merger Regulation. The approval is one the place situations need to be met to deal with the Fee’s competitors considerations.
The commitments “totally deal with the competitors considerations recognized by the Fee and symbolize a major enchancment for cloud gaming as in comparison with the present state of affairs,” the regulator mentioned.
The choice was made following an investigation into the proposed acquisition, which initially discovered Microsoft might hurt competitors within the console and PC recreation market, in addition to within the provide of working methods for PCs. An in-depth market investigation then discovered Microsoft would not hurt rival consoles or rival multi-game subscription companies.
Nonetheless, that in-depth investigation additionally decided Microsoft might nonetheless hurt competitors within the distribution of video games through cloud recreation streaming companies, and that its PC OS market place can be strengthened.
To counter the considerations, Microsoft supplied licensing commitments that may final for ten years. This included a free license to EEA customers to stream all present and future Activision Blizzard PC and console video games the place they already personal a license, and a free license to cloud recreation streaming suppliers to permit players to stream those self same video games.
“Video video games entice billions of customers everywhere in the world. In such a fast-growing and dynamic business, it’s essential to guard competitors and innovation,” mentioned Margrethe Vestager, govt VP in control of competitors coverage on the Fee.
“Our resolution represents an vital step on this route, by bringing Activision’s common video games to many extra gadgets and customers than earlier than due to cloud recreation streaming.”
Whereas Europe has given the stamp of approval, it does not assist Microsoft’s state of affairs within the UK, which has already been halted by regulators over potential lowered competitors in cloud gaming. On Might 5, the Competitors and Markets Authority went additional, publishing an interim order limiting acquisitions between the businesses by forcing them to acquire “prior written consent” from the regulator.
Microsoft plans to attraction in opposition to the CMA.
