Microsoft faces new hurdle in acquiring Activision Blizzard. Second Bloombergthe European Commission has just sent a statement of objections to the Redmond company, this one relating to the impact of the acquisition on the video game sector, and in particular cloud gaming.
A habitual step
Microsoft announced the acquisition of the video game studio in January 2022 for $68.7 billion the largest operation in the history of the sector. This will allow the tech giant to do just that get your hands on fan favorite franchises like World of Warcraft or Call of Duty.
Only, regulators were quick to review this acquisition given its scale. The European Union has therefore launched a thorough investigation into the matter, and has just sent Microsoft a list of its objections. This is a relatively usual step, which allows the authorities of the Old Continent to explain the potential reasons for blocking the operation in the absence of corrective actions.. This does not necessarily mean that the takeover is meant to be contested. The European Commission a until April 11th to decide whether to block it or not.
The US antitrust regulator, the FTC (Federal Trade Commission), is also in place but has outgrown its European counterpart. In fact, it has initiated proceedings to prevent the acquisition from being carried out, and he does not want to be taken aback by the European Commission. In fact, if Microsoft implements the remedies faced by the EU, the latter would validate the operation, which would weaken the American procedure. This is a case taken very seriously by the FTC, which wants to raise its voice against big tech, and in particular corporate mergers.
An acquisition that makes people talk
Globally, regulators fear Microsoft will gain an overwhelming monopoly through the acquisitionin particular by making the Call of Duty franchise exclusive to its ecosystem, which would allow it to significantly enhance its already market-leading Game Pass cloud gaming offer.
The Redmond company is trying to dispel the concerns and there is no shortage of arguments in this regard, but its direct competitors are also against the acquisition. He then made deals with Valve and Nintendo so they can offer Call of Duty titles for ten years., and wanted to make an agreement with Sony which, according to sources, would not have been accepted by the Japanese giant, being the latter one of the staunchest opponents of the operation. On his side, Microsoft hopes to complete the acquisition in Junebut the FTC intends to spoil his party.
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