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EU approves Microsoft's takeover of Activision Blizzard

Samuel Buchmann
15.5.2023
Translation: machine translated

The EU Commission has given its blessing to the takeover deal between Microsoft and Activision Blizzard. However, it is not clear whether it will actually materialise.

The authorities of the European Union have authorised the 68.7 billion dollar takeover of Activision Blizzard by Microsoft. In its press release, the Commission comments on concerns in two areas: Those regarding competition in the console market and those regarding competition in the cloud gaming market.

With regard to console games, the Commission concludes that there are no incentives for Microsoft to deny its competitor Sony access to important titles. The EU does see risks to competition in the cloud gaming market. However, Microsoft has fully allayed these concerns with ten-year commitments for free licences for other suppliers. "They ensure a significant improvement for the cloud gaming sector compared to the current situation," writes the Commission.

With regard to the console market, it says: "Even if Microsoft decided to stop offering Activision Blizzard's games for Playstation, this would not significantly affect competition." With its size and market position, Sony has the necessary resources to develop its own competitive games.

Numerous other hurdles

The legal process in the UK is likely to take months. Microsoft also still faces a number of hurdles in the USA. The Federal Trade Commission (FTC) filed a lawsuit there last year to block the takeover. The first hearing is scheduled for 2 August. Authorities in other countries, however, have approved the deal, including Chile, Brazil, Japan, Saudi Arabia and South Africa.

Microsoft's original plan was to finalise the acquisition by the end of July. This now seems impossible - and the delay will be quite expensive: according to the terms of the deal, compensation totalling three billion dollars will then be due to Activision Blizzard. <p

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Samuel Buchmann
Senior Editor
Samuel.Buchmann@digitecgalaxus.ch

My fingerprint often changes so drastically that my MacBook doesn't recognise it anymore. The reason? If I'm not clinging to a monitor or camera, I'm probably clinging to a rockface by the tips of my fingers.

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