Microsoft Faces Full EU Antitrust Probe Into Activision Blizzard Deal

Microsoft might have to supply concessions to deal with EU antitrust issues about its $69 billion (roughly Rs. 5,62,500 crore) bid for Call of Duty maker Activision Blizzard after regulators opened a full-scale investigation on Tuesday and warned concerning the impression of the deal. The US software program firm, which introduced the deal in January, is betting Activision’s secure of video games will assist it compete higher with leaders Tencent and Sony, with the latter essential of the deal.

“The Commission’s preliminary investigation shows that the transaction may significantly reduce competition on the markets for the distribution of console and PC video games, including multigame subscription services and/or cloud game streaming services, and for PC operating systems,” the European Commission stated in a press release.

“The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in foreclosure strategies vis-à-vis Microsoft’s rival distributors of console video games,” it added.

Microsoft stated it might work with the EU antitrust watchdog to deal with legitimate market issues.

“Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less,” a Microsoft spokesperson stated.

The EU competitors enforcer stated it might determine by March 23, 2023, whether or not to clear or block the deal. Reuters reported on October 31 that Microsoft would face an intensive EU probe after declining to supply treatments through the preliminary EU evaluate of the deal.

Britain’s antitrust watchdog can also be investigating the acquisition, with comparable issues to its EU peer.

© Thomson Reuters 2022