FX.co ★ EU greenlights Microsoft’s takeover of Activision Blizzard

Not so long ago, Microsoft Corp. announced plans to acquire Activision Blizzard Inc., a leader in game development and interactive entertainment content publisher. To do so, Microsoft had to convince regulators that the merger would not hurt competition. The company was able to overcome this obstacle. The European Commission approved Microsoft’s $68.7 billion acquisition of Activision Blizzard. "The approval is conditional on full compliance with the commitments offered by Microsoft," the European Commission stated.

Microsoft announced its intent to acquire Activision Blizzard in January 2022. It was preparing to take over the company in the summer of the same year. However, such large acquisitions are not made without the approval of US and EU regulators. Activision Blizzard is truly a legendary company in the gaming industry. It has released such videogames as Call of Duty, World of Warcraft, Candy Crush, Tony Hawk, Diablo, Overwatch, Spyro, Hearthstone, Guitar Hero, Crash Bandicoot, and StarCraft. This is why regulators probed the merger. The European Commission greenlighted the deal after accepting Microsoft's offer to modify its licensing agreements and release Call of Duty on various cloud gaming platforms.

If Microsoft were to make Activision’s games exclusive to its own cloud game streaming service, it would not significantly impede competition in the distribution of games via cloud streaming, the regulator stressed.

Now, Microsoft needs to convince US regulators. At the end of last year, the Federal Trade Commission (FTC) filed an antitrust case against Microsoft to challenge the software maker’s attempt to acquire Activision Blizzard. "With control of Activision’s content, Microsoft would have the ability and increased incentive to withhold or degrade Activision’s content in ways that substantially lessen competition - including competition on product quality, price, and innovation,” the FTC said in its complaint. The FTC case is set to go to trial in August.