EU launches in-depth probe of Microsoft’s proposed Activision Blizzard acquisition
The European Commission has officially launched an in-depth probe of Microsoft’s proposed acquisition of Activision Blizzard.
As expected, following its initial inquiries into the $68.7 billion deal, the European watchdog said on Tuesday that it had opened a ‘phase II’ investigation amid competition concerns.
“The European Commission has opened an in-depth investigation to assess the proposed acquisition of Activision Blizzard by Microsoft under the EU Merger Regulation,” it said.
“The Commission is concerned that the proposed acquisition may reduce competition in the markets for the distribution of console and personal computers (‘PCs’) video games and for PC operating systems.”
The Commission now has 90 working days, until March 23, 2023, to make a final ruling on the deal.
The Commission said its preliminary investigation showed that the transaction could significantly reduce competition in several areas.
“In particular, 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’,” it wrote.
“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.
“When it comes to multi-game subscription services and/or cloud game streaming services in particular, the Commission is concerned that, by
Read more on videogameschronicle.com
