EU Opens In-Depth Investigation Into Microsoft's Activision Blizzard Acquisition - News
by William D'Angelo , posted on 08 November 2022 / 3,801 Views
The European Commission has announced it has opened up an in-depth investigation into Microsoft's proposed acquisition of Activision Blizzard.
The Commission has expressed concerns the deal if approved might reduced competition in the video game markets of consoles and PCs, as well as for PC operating systems.
One of the concerns is that Microsoft might limit access to Activision Blizzard games, including Call of Duty, and might stop these games from releasing on rival video game consoles.
"The Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access to Activision Blizzard's console and PC video games, especially to high-profile and highly successful games (so-called AAA games) such as Call of Duty," reads the report from the European Commission.
"The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in foreclosure strategies vis-à-vis Microsoft's rival distributors of console video games, such as preventing these companies from distributing Activision Blizzard's console video games on consoles or degrading the terms and conditions for their use of or access to these video games."
The European Commission has expressed similar concerns when it comes to multi-game subscription services and cloud game streaming services.
"When it comes to multi-game subscription services and/or cloud game streaming services in particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access, to the detriment of its rival distributors of console and PC video games that offer such services, to its own PC and console video games, which are key for the provision of the nascent services of multi-game subscription and cloud game streaming," reads the report.
"Such foreclosure strategies could reduce competition in the markets for the distribution of console and PC video games, leading to higher prices, lower quality and less innovation for console game distributors, which may in turn be passed on to consumers.
"Finally, at this stage of the investigation, the Commission has concerns that the proposed acquisition may reduce competition on the market for PC operating systems. In particular, the Commission is concerned that Microsoft may reduce the ability of rival providers of PC operating systems to compete with Microsoft's operating system Windows, by combining Activision Blizzard's games and Microsoft's distribution of games via cloud game streaming to Windows. This would discourage users to buy non-Windows PCs."
The European Commission now has until March 23, 2023 to make a decision on the proposed acquisition. The more in-depth investigation does not prejudge the outcome.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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I think this is going to go through, but the next major purchase might not if they are getting this much scrutiny on Activision. If Microsoft tries to purchase Take Two or EA a few months after Activision deal goes through, it will probably get stopped.
Yes it will go through for sure but I really do not think Microsoft will try something like that after acquiring Activision tho. Exactly for the reason you said; it is going to be a hell of a journey to get everyone to accept it.
Not sure If this will pass, at least not without some major "concessions". I'm sure CoD will be on Playstation for a very long time, like in the next 10 years, perhaps more.
Sony have to stop it. MS is not grandma or Santa. "Concessions over their belongings" till the end this generation is Ok.
You don't have to buy take two though, just moneyhat their one or two games they bring out each gen
they already have EA Gamepass deal so is no need to buy them
That it has taken 10 months to decide to do a full investigation is farcical. Absolute clown show.
A fair concern given Microsoft's long history of using their assets as leverage to create an anti-competitive environment. If they've done it before then there is no reason to think they won't do it again.
I mean that was expected :)
But this: "Microsoft may reduce the ability of rival providers of PC operating systems to compete with Microsoft's operating system Windows"... What other provider is even competing at this point with Microsoft Windows on PC for gaming lol... Linux? BeOS? PC DOS? Come on lol... There is virtually NO competition already if you want to play on PC (and please... don't bring Linux as a "viable" option, it is an option, NOT a competitor by any mean)
I think the concern about storefront competition is valid. Microsoft is probably the only viable competitor to steam if this deal goes through, and them controlling the operating system is a huge inbuilt advantage. The xbox app is already preinstalled on windows 11
I agree with stores, and it is a valid concern even if not really an issue, Steam is not going to be impacted if they do not sale COD on it... Steam is completely and will still dominate it for a while :)
But they are talking about "OS" specifically... Which is a joke ahah
Nah even then MS wont be a viable competitor. Everyone hates their app on PC. People use it for GP and that's it.
Speak for yourself I don’t mind the app it’s like my laptop is an Xbox now I don’t need a series x or a s at all now.I mean I’m still getting a series x but in the holidays
Yea I guess if your not familiar with PC gaming that would seem cool but their are other apps that do the same thing but better. Playnite is much better for this setup. Turned my PC into a gaming console.
I am familiar with steam , epics games, and battle net . I hate battlenet , but I have no complaints with the other apps. I’m just used to Xbox and the app is like Xbox to me . But it could just be me I like it.
You should try playnite. Lets you combine all your different stores into one app to launch them. Has different themes and game play trailers as well when you go to a game.
I’ll give it a go . I’m open to new things
I think Linux has been slowly creeping up in Steam stats, which is probably mainly thanks to SteamOS. It's not an acute threat to Windows at the moment, but I'm sure Microsoft is keeping an eye on it - and it's much easier to crush competition before it becomes proper competition rather than after.
I think the FTC and the European commission will seek assurances from MS (in the form of binding legal decrees) that MS make there software available on competing subscription services at fair market prices for a certain period of time.
I think they'll allow it but forced MSFT to offer GP at cost and prevent the wider MSFT group from subsidising the games division.
That should be a minimum for anti-dumping tactics, independent of this purchase.
Everything is good guys. Someone from the EU commission (But isnt directly involved with the case) said the EU is working to make sure CoD stays on "Their" PlayStation so nothing to worry about! :-) .
Easy to see the same few users in here biting at the bit with their one liners and silly statements but yet cant answer why the CMA mentioned Sony so many times but consumers only like 4 times. I am also pretty sure i didnt really see anyone on VGC say Sony paid them off. But yes guys keep giving them sound bites and putting words into peoples mouths if it makes you feel better :-) . Anyway this was always expected and at least the EC is looking into the wider things such as pc store fronts etc instead of like the cma who was pretty much just repeating everything Sony said.
Lol they are grasping on straws here. Ms will always share games on pc. They have no reason to not release it on pc when it has gamepass pc. Plus steam is the king in terms of the best place to play pc games. It's about time steam and epic got some competition lol
Again this non argument base on CoD. It is an IP that can be sold and bought without ever facing regulation. Here regulatory bodies use the purchase of entities to justify having a say in regards to an IP ownership which seems like an outreach of their actual mandate.
Doesnt Apple make more money in their gaming devision than MS with Xbox/Windows?
If Nintendo can survive without CoD, so can Apple, Steam and Sony.
MS had the chance to engage with the EU, they chose not to. Another website goes through a lot of it.
So after accusing UK of being bought by Sony the accusation will need to be amplified to whole Europe Union?
Unlike Brazil the EU is cheap to buy off I guess.
LOL, here is a fact. The UK and EU have significantly higher consumer protections than Americans. Deal with it.
And yet the CMA's phase 1 team proved that they are prioritizing sony over the consumer.
Man, the CMA has been sued so many times before by protecting third party's intererests before the consumers... And all of them they have lost.
Besides, the file that CMA gave sharing its concerns, it says consumer only 4 times, and Sony is mentioned like........ 30 times. And you say what?
And yet nothing like this was ever done to Disney over there mass media acquisitions. The double standard is just fucking ridiculous. -_-
Actually it only approved the Disney purchase of Fox if it divested of specific assets.
Which assets were those?
Nothing major it seems - if it was major we would have all heard about it.
https://www.justice.gov/opa/pr/walt-disney-company-required-divest-twenty-two-regional-sports-networks-order-complete
Wouldn't it be funny as hell if Microsoft as a condition of the purchase was forced to divest/close Gamepass or prohibit the publishing of ABK games to gamepass.
Yip it won't happen but it would be funny if it was.
Sony deep pockets to buy all these comissions ... This is disgusting... This is bullying !!!
Let us compete.... with sugar dad money.
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