As expected, the European Commission finally gave its verdict on Microsoft's purchase of Activision Blizzard. Contrary to what the UK Competition and Authorities Commission (CMA) did, the European Commission sided with Microsoft and approved the deal.
In a statement, the regulator explained that it decided to give the green light to the purchase because of all the remedies and concessions Microsoft has made over the past few months. The European Commission demanded some more concessions regarding cloud gaming. In this way it guarantees that the purchase will represent an improvement for the emerging sector.
European Commission rules out industry damage from Activision Blizzard purchase
The European Commission explained that it conducted an in-depth investigation to analyze each point of this purchase. Thus, it concluded that Microsoft will not harm its competitors in consoles and subscription services with the acquisition of Activision Blizzard.
From its perspective, the technology giant has no reason to stop distributing Activision games on Sony platforms. The agency believes Microsoft would not hurt its rivals even if it will keep certain games from the studio, such as Call of Duty.
"Therefore, even without being able to offer this specific game, Sony could leverage its size, extensive games catalogue and market position to fend off any attempt to weaken its competitive position." the European Commission said.
As for the cloud gaming market, the regulator reached similar conclusions to the CMA, noting that Microsoft can leverage Activision Blizzard's franchises to gain a privileged position in the sector. However, it proposed remedies that will allow Microsoft to move forward.
#EUMergerControl Commission 🇪🇺 clears acquisition of Activision Blizzard 🎮by Microsoft, subject to conditions 👇
— EU Competition (@EU_Competition) May 15, 2023
🔗➡️https://t.co/qG3D0jNfPo pic.twitter.com/Q3P2miYisH
Microsoft and Activision to make further concessions on cloud gaming
To address the issue related to cloud gaming, the companies will offer a free license to consumers in Europe that will allow them to stream "all current and future Activision Blizzard PC and console games for which they have a license."
The agency noted that Activision Blizzard does not currently license its games on cloud gaming services. However, with this grant, gamers who purchase at least one title from the company will have the right to stream their titles on any cloud gaming service.
"Taking into consideration the feedback of the market, the Commission concluded that the proposed acquisition, as modified by the commitments, would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers. The Commission's decision is conditional upon full compliance with the commitments. Under supervision of the Commission, an independent trustee will be in charge of monitoring their implementation," the regulator said.
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