The European Union has made it official that Microsoft is allowed to acquire Activision Blizzard from its proposed merger which it pushed forth in 2022. This means that Microsoft is only steps away from continuing its acquisition of the game's developer and publisher, but there is still a significant roadblock to this, with the UK yet to reveal its final decision.
Microsoft and Activision-Blizzard's merger has been long in the works, but there were many opposed entities when it first announced the news about this deal.
(Photo : Image via Microsoft)
Microsoft-Activision Acquisition is Approved by the European Union
In a significant development, the Microsoft-Activision Blizzard merger has been approved by the European Union (EU). The European Commission has given its stamp of approval to the deal in its final report, which was released today.
However, the EU has imposed certain conditions to ensure the preservation of competition in the industry.
Under the EU's conditions, Microsoft is required to make Activision Blizzard games available to all consoles and cloud platforms for at least ten years. This requirement aims to prevent any potential anti-competitive behavior and ensure that gamers have access to a diverse range of platforms and choices.
Additionally, the Commission proposed a remedy regarding this issue "A free license to consumers in the EEA that would allow them to stream, via any cloud game streaming services of their choice, all current and future Activision Blizzard PC and console games for which they have a license," among other solutions.
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The UK is On a Break in Reviewing the Merger Deal
The Microsoft-Activision Blizzard merger, valued at a staggering $69 billion, has raised concerns among regulators and industry observers. The UK's CMA, in particular, is still in the process of reviewing the merger and has yet to reach a decision.
Previous reports have expressed concerns about the potential impact of the acquisition on competition within the gaming industry.
Microsoft-Activision Blizzard's Merger
Back in early 2022, there has been news regarding the deal pushing through, with Activision-Blizzard CEO Bobby Kotick already making it known to employees.
However, regulators were the major roadblocks in this deal, as the FTC, the EU, and the UK's CMA raised their concerns regarding this, one that may destroy the competition and put Microsoft in a controlling spot.
The European Commission's decision comes after a thorough review of the merger and an assessment of its potential impact on competition. The conditions imposed on Microsoft are intended to strike a balance between allowing the merger to proceed while safeguarding consumer interests and competition in the market.
As the UK continues its review of the merger, the concerns raised in previous reports regarding competition and market dynamics will likely be taken into account. It remains to be seen how the UK's decision will align with the EU's approval and the conditions imposed.
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