South Africa Approves Microsoft's Activision Blizzard Acquisition - News
by William D'Angelo , posted on 17 April 2023 / 5,075 Views
The Competition Commission of South Africa, the regulator in South Africa, has unconditionally approved Microsoft's Activision Blizzard acquisition.
"The primary competition concern in this transaction arose from the (vertical) concern that Microsoft may, post-merger, restrict the distribution of Call of Duty to the Microsoft console, Xbox, or make Call of Duty available on terms that exclude or undermine the ability of other console manufacturers to compete," reads the statement from the Competition Commission of South Africa.
"The Commission found that the proposed transaction is unlikely to result in significant foreclosure concerns as the parties do not have the ability and incentive to foreclose competing game distributors, particularly Sony (PlayStation) and Nintendo (Switch). Furthermore, the merging parties have made undertakings to continue supplying Call of Duty games to other console manufacturers.
"Therefore, the Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any substantial public interest concerns."
Microsoft's Activision Blizzard acquisition has also been approved in Japan, Chile, Brazil, Saudi Arabia, and Serbia. The deal still needs approval in the US, UK, European Union, and more.
Microsoft has submitted remedies to the European Union regulator, the European Commission, which has since extended its deadline from April 25 to May 22.
The UK regulator, the Competition and Markets Authority (CMA), has recently published an addendum to its provisional findings saying it has received new evidence that has led it to conclude that if the acquisition is approved it won't significantly lessen competition in the video game console market in the UK. The new evidence shows that Microsoft would lose significant money if it were to make Call of Duty exclusive to Xbox consoles and this would incentivize Microsoft to continue to release Call of Duty games on PlayStation consoles.
Microsoft has recently announced it has signed multiple 10-year deals to bring Xbox games on PC to three cloud streaming services - Nvidia's GeForce Now, Boosteroid, and Ubitus. Microsoft has also signed a 10-year deal with Nintendo to release Call of Duty on Nintendo consoles on day one with full content parity.
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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Very reasonable verdict.
Of course, only corrupt “regulators” think being roughly equal with your competitors after Xbox buys ABK, is a “monopoly”.
Pony cultists are totally discredited.
wow u k lol?
He read that new word "corrupt" on Twitter the other day and now keep using it whaveter the context
Like a moth to a flame. Triggered cultist out themselves ever chance they can, without realising they are doing it.
Thanks for the confirmation.
When you point to the moon, the idiot put your finger in his eye.
I can talk cryptic too
