After an exhaustive review by regulators in the United States and across the globe, Microsoft’s proposed acquisition of Activision Blizzard is on track to close later this year. The European Commission approved the transaction in May, the Federal Trade Commission has suspended its administrative challenge, and negotiations are underway with the United Kingdom’s Competition and Markets Authority.
As the newly elected president of the Communications Workers of America, I am extremely encouraged by these developments. Thanks to the regulatory process, this deal will significantly enhance competition in the video game industry while securing workers’ rights and consumer interests.
In a complaint filed to block the acquisition, the FTC commissioners expressed concern that Microsoft would stifle competition by withholding popular Activision video games from other game consoles and streaming services. The concessions Microsoft has made to win approval from the European Commission not only address those concerns, but they also expand the availability of Activision titles to additional cloud gaming services that did not previously carry titles like Call of Duty.
That’s a significant win for consumers. Under the terms of the merger, Microsoft will be doing more to ensure that its games are available on multiple platforms than Activision Blizzard is currently doing and more than its chief competitor, Sony, which blocks U.S.-based competitors from competing in Japan’s gaming market.
For workers, the potential benefits are even more dramatic.
The technology and video game industries are notorious for enabling toxic and discriminatory work environments and for fighting workers who want to organize a union. I have seen this firsthand. Prior
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