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Microsoft Gains EU Approval to Acquire Activision-Blizzard

GAMING – The European Commission has given its approval a few weeks after the United Kingdom blocked the acquisition. UK authorities fear a monopoly in the cloud gaming domain, although some competing companies support Microsoft in this matter.
Despite concerns about monopoly in the cloud gaming sector, the European Union has approved Microsoft's acquisition of Activision-Blizzard.
Despite concerns about monopoly in the cloud gaming sector, the European Union has approved Microsoft’s acquisition of Activision-Blizzard. This image was generated by an artificial intelligence for illustration purposes. © Nikolas1007 / Midjourney

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Published on May 28, 2023 – 09:30 GMT +02:00

For instance, Nvidia, which operates the GeForce Now service, stated in a tweet that cloud gaming companies would benefit from the addition of Activision games to Microsoft’s repertoire. The two companies entered a 10-year partnership in February to integrate Xbox Game Pass games into Nvidia’s service.

“GeForce NOW and other cloud gaming providers will benefit from an even larger game catalog if Microsoft’s acquisition of Activision goes through. We see this as an advantage and hope for a favorable outcome.”

The European Union considered these arguments and imposed safeguards related to the cloud gaming market. The main safeguard concerns the right of consumers to play Activision-Blizzard games on any cloud gaming service, through a licensing system provided by Microsoft and industry companies.

Exclusivity of Activision Games

The European Commission ruled that Microsoft had no reason to make Activision games exclusive, unlike Sony’s requirements. Even if this were to happen, the regulator estimated that there would be no harm to free competition in the console market.

Read also: PlayStation Showcase: Top 5 Expectations for the May 24 Event

However, the acquisition is far from finalized, as the issue remains pending in the United Kingdom and the United States. Microsoft is contesting the British decision and awaits a new assessment, while the US Federal Trade Commission (FTC) has initiated a procedure to block Microsoft’s purchase of Activision-Blizzard.

In the meantime, the acquisition has been approved in Brazil and Japan, and other regions such as Australia, South Korea, and China are reviewing the matter.

If the acquisition does not materialize, other market players such as Google, Amazon, and Apple might be interested in Activision-Blizzard. Alternatively, Activision-Blizzard could remain independent and continue to focus on franchises like Call of Duty, World of Warcraft, and Overwatch.

As for Microsoft, the resources and funds that would have been dedicated to the acquisition could be used to acquire smaller studios or invest in the company’s existing portfolio.

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This article was written based on information provided by the technology news site Canaltech here.

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