The European Commission has announced an in-depth investigation into Microsoft’s acquisition of Activision Blizzard. It is “concerned that the proposed acquisition may reduce competition in the game console and PC distribution market”.
As of the date of this announcement, the European Commission has 90 days to make a final decision on the acquisition. Until then, the deal will be on hold. Elsewhere, UK and US regulators have yet to make a decision, despite concerns expressed by the UK’s Competition and Markets Authority.
Regarding the specific question of the European Commission, it boils down to the possibility that Microsoft will stop accessing Blizzard games on rival platforms. It’s also concerned that it could adversely affect multi-game subscriptions and cloud game streaming on other platforms.
The official announcement specifically mentions Call of Duty, which is a particularly sore spot. The committee is concerned that “Microsoft may ban access to Activision Blizzard’s console and PC video games, particularly high-profile and highly successful titles such as ‘Call of Duty’ (so-called ‘AAA’ games).”
It’s worth noting that Microsoft has made reassurances to their PlayStation user base, but Sony Interactive Entertainment CEO Jim Ryan has come forward to express their dissatisfaction with the big company’s reassurance.
The last worrying news from the European Commission focused on the PC platform, as it believes the deal could make it difficult for rival suppliers of PC operating systems to compete with Windows. This automatically views Blizzard’s game library through cloud game streaming combined with Microsoft’s game distribution service on PCs.
How has Activision Blizzard responded to this development? Activision Blizzard’s CEO released a statement on Activision Blizzard’s investor website discussing the development. While they acknowledged the European Commission’s decision and Blizzard’s intent to continue cooperating with the Commission, they brought up the example of regions such as Brazil approving the deal to offset the news.
What’s your take on all this? It still doesn’t look like we’ll see the conclusion of this huge deal anytime soon. Do you think Activision Blizzard and Microsoft will be able to convince the EU to approve the deal? Let us know below!
