The Commission

Impact

<p><strong>The European Commission finally approved the acquisition, but there are some conditions for Microsoft.</strong></p>
<h2 style="text-align: center;" id="long-awaited-approval">Long Awaited Approval</h2>
<p>The European Commission has <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_23_2705" target="_blank" rel="noopener">approved</a> Microsoft&#8217;s acquisition of Activision Blizzard, subject to certain conditions. This decision follows an in-depth investigation and aims to address competition concerns related to cloud gaming and PC operating systems.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">BREAKING: The EU has approved Microsoft&#39;s acquisition of Activision Blizzard King. <a href="https://t.co/jgp7sCqckO">pic.twitter.com/jgp7sCqckO</a></p>
<p>&mdash; Xbox News (@_XboxNews) <a href="https://twitter.com/_XboxNews/status/1658118638564417538?ref_src=twsrc%5Etfw">May 15, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="investigation-findings">Investigation Findings</h2>
<p>In the investigation, the Commission examined various aspects of the proposed acquisition. It found that Microsoft would have no incentive to withhold Activision&#8217;s games from Sony, the leading distributor of console games worldwide. The removal of Activision&#8217;s games from the PlayStation would not significantly harm competition in the console market. Additionally, Activision would not have made its games available for multi-game subscription services even without the acquisition.</p>
<h2 style="text-align: center;" id="concerns-in-cloud-gaming-and-pc-operating-systems">Concerns in Cloud Gaming and PC Operating Systems</h2>
<p>The Commission identified potential competition concerns in the distribution of games through cloud game streaming services. If Microsoft made Activision&#8217;s games exclusive to its own cloud game streaming service, it would limit competition in this emerging market. Furthermore, Microsoft could strengthen its position in the PC operating systems market if it hindered or degraded the streaming of Activision&#8217;s games on non-Windows operating systems.</p>
<h2 style="text-align: center;" id="remedies-offered-by-microsoft">Remedies Offered by Microsoft</h2>
<p>To address these concerns, Microsoft proposed comprehensive licensing commitments for a period of 10 years. These commitments include granting consumers in the European Economic Area (EEA) the right to stream Activision&#8217;s games through any cloud game streaming service of their choice. EEA-based cloud game streaming service providers would also receive licenses to stream Activision&#8217;s games. These licenses ensure that gamers can stream the games on any device using any operating system, with the same quality and content as traditionally downloaded games.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-23162" src="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/FwLNIPuWwAEtv2X.png" alt="" width="680" height="480" srcset="https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/FwLNIPuWwAEtv2X.png 680w, https://walletinvestor.com/magazinadmin/wp-content/uploads/2023/05/FwLNIPuWwAEtv2X-300x212.png 300w" sizes="(max-width: 680px) 100vw, 680px" /></p>
<h2 style="text-align: center;" id="benefits-and-consumer-impact">Benefits and Consumer Impact</h2>
<p>The Commission carefully assessed the effectiveness of the remedies and received positive feedback from market participants. The licensing commitments offered by Microsoft fully address the competition concerns identified by the Commission. They will empower EEA consumers to stream Activision&#8217;s games on various cloud gaming platforms, fostering competition and providing more opportunities for growth. The availability of Activision&#8217;s popular games on multiple streaming services will also drive the development of cloud gaming technology in the EEA.</p>
<h2 style="text-align: center;" id="divergent-approvals-and-appeal">Divergent Approvals and Appeal</h2>
<p>While the European Commission has approved the acquisition, the UK Competition and Markets Authority (CMA) recently <a href="https://walletinvestor.com/magazine/britain-blocks-microsofts-acquisition-of-activision-blizzard" target="_blank" rel="noopener">blocked</a> it due to concerns about reduced competition in the cloud gaming market. Microsoft is appealing the CMA&#8217;s decision. The approval from the European Commission may strengthen Microsoft&#8217;s position, but regulatory scrutiny from the US Federal Trade Commission is still pending.</p>
<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>The European Commission&#8217;s approval, subject to compliance with the licensing commitments, allows Microsoft to move forward with its acquisition of Activision Blizzard. This decision addresses competition concerns and paves the way for Activision&#8217;s popular games to reach a wider range of devices and consumers through cloud game streaming. The licensing commitments offer significant benefits to consumers, promoting competition and innovation in the gaming industry.</p>

Commission Clears Microsoft’s Acquisition of Activision Blizzard with Conditions

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