EU approves Microsoft's takeover of Activision Blizzard

The authorities of the European Union have authorised the 68.7 billion dollar takeover of Activision Blizzard by Microsoft. In its press release, the Commission comments on concerns in two areas: Those regarding competition in the console market and those regarding competition in the cloud gaming market.

With regard to console games, the Commission concludes that there are no incentives for Microsoft to deny its competitor Sony access to important titles. The EU does see risks to competition in the cloud gaming market. However, Microsoft has fully allayed these concerns with ten-year commitments for free licences for other suppliers. "They ensure a significant improvement for the cloud gaming sector compared to the current situation," writes the Commission.

With regard to the console market, it says: "Even if Microsoft decided to stop offering Activision Blizzard's games for Playstation, this would not significantly affect competition." With its size and market position, Sony has the necessary resources to develop its own competitive games.

The tech giant has allayed concerns about competition in the cloud gaming market with its licensing commitments: for ten years, consumers in the European Economic Area (EEA) will be able to play current and future Activision Blizzard games via the cloud gaming service of their choice. Microsoft undertakes to make the licences available to the respective suppliers free of charge. President Brad Smith wrote on Twitter that the promise applies not only in the EEA, but worldwide.

Numerous other hurdles

The EU has thus decided differently to the British regulators. The Competition and Markets Authority (CMA), which is responsible there, blocked Microsoft's acquisition a few weeks ago. It also fears unfair advantages in the cloud gaming market. Unlike the EU, however, the British were not persuaded by the ten-year licence promise. Microsoft wants to appeal the decision. In a statement on Twitter, the CMA is sticking to its view of the matter even after the EU Commission's authorisation.

The legal process in the UK is likely to take months. Microsoft also still faces a number of hurdles in the USA. The Federal Trade Commission (FTC) filed a lawsuit there last year to block the takeover. The first hearing is scheduled for 2 August. Authorities in other countries, however, have approved the deal, including Chile, Brazil, Japan, Saudi Arabia and South Africa.

Microsoft's original plan was to finalise the acquisition by the end of July. This now seems impossible - and the delay will be quite expensive: according to the terms of the deal, compensation totalling three billion dollars will then be due to Activision Blizzard. <p