Microsoft's Activision-Blizzard Acquisition Hits UK and EU Regulatory Hurdles

[btarunr]

Microsoft's USD $68.7 billion acquisition of Activision-Blizzard is running into hurdles with competition regulators in both the UK and the EU, with both Brussels and London hinting at a thorough investigation into the impact the acquisition will have on competition in their respective markets. Microsoft is already a game publisher under Microsoft Games Studio, and makes at least two leading gaming platforms—the Xbox and Windows PC; whereas Activision-Blizzard own a constellation of dozens of game developers, and a mountain of IP over some of the most valuable game franchises of all time.

Britain's Competition and Markets Authority has hinted that the acquisition warrants a "second-phase investigation" since it has concerns that the deal would "result in a substantial lessening of competition within a market or markets in the United Kingdom." Over in Brussels, the EU market regulators, too, are taking a closer look at what the deal could entail for European consumers. Sony Computer Entertainment is particularly unhappy with the acquisition, and is the primary source of opposition to the deal that's invoked by regulators. Sony fears that with this acquisition, Microsoft will be in a position to deny popular game franchises such as "Call of Duty" to the PlayStation platform, and will have too much control over whether Sony can deliver an experience comparable or better than that of the Xbox.



Many Thanks to DeathtoGnomes for the tip.

View at TechPowerUp Main Site | Source

 

[S73fan]

I can't understand why Microsoft is allowed to buy more companies? In the end it will become like a black hole that will suck everything and that will be the end...

 

[Robin Seina]

So the Sony is objecting to the practise which they used themselves... Clever, really clever...

 

[64K]

I understand where the UK and EU are coming from. MS has a bad habit of monopolistic practices. I'm not saying they are a monopoly in the OS department though. There is always Linux but for the vast majority Linux has a very small adoption rate outside of servers.

 

[Xeanoa]

I hope the deal goes through. Aquisitions of of game studios by Microsoft in recent years have had pretty positive outcomes overall. Out of all the large publishers, I think Microsoft is the most customer centric. They are also in a position where they are able to breathe new life in some of the IP that Acti-Blizz have shelved in favour of immediate profits.

 

[lexluthermiester]

I hope the deal goes through. Aquisitions of of game studios by Microsoft in recent years have had pretty positive outcomes overall. Out of all the large publishers, I think Microsoft is the most customer centric. They are also in a position where they are able to breathe new life in some of the IP that Acti-Blizz have shelved in favour of immediate profits.

There are days, like today, when I read comments like this and am so taken aback that I stop for a brief moment to wonder: "One of us has a firm grasp on things and the other is so far out of touch with reality that we come across as hilariously delusional, but which is which?"... Very brief moment indeed...

 

[DeathtoGnomes]

I hope the deal goes through. Aquisitions of of game studios by Microsoft in recent years have had pretty positive outcomes overall. Out of all the large publishers, I think Microsoft is the most customer centric. They are also in a position where they are able to breathe new life in some of the IP that Acti-Blizz have shelved in favour of immediate profits.

The only thing that will breathe life into AB is n fresh faces. M$ does do better with games than some other publishers.

There are days, like today, when I read comments like this and am so taken aback that I stop for a brief moment to wonder: "One of us is has firm grasp on things and the other is so far out of touch with reality that we come across as hilariously delusional, but which is which?"... Very brief moment indeed...

The who part is really up in the air.

 

[mechtech]

Almost $70 billion!!! Really?!?!?

 

[TechLurker]

Sony will never be able to provide a comparable offering as long as they stick to their puritanical censorship values they've enacted in the late PS4/current PS5 era that's caused a number of game makers to shift to Xbox, PC, or even Nintendo, or release their games without pointless censorship on those platforms while Sony gets the sterilized version, even if it's just word changes.

 

[64K]

Almost $70 billion!!! Really?!?!?

Activision Blizzard is a very profitable company but 60 billion USD is more of a fair price imo.

 

[lexluthermiester]

Almost $70 billion!!! Really?!?!?

Yeah, it's a testament to Microsoft's foolishness.

 

[Deleted member 185088]

Makes sense they'll make it difficult for Microsoft especially given their history.

 

[medi01]

I can't understand why Microsoft is allowed to buy more companies? In the end it will become like a black hole that will suck everything and that will be the end...

Do you prefer Overlord Bezos buying it?

This dude had warned ya about capitalism:

So the Sony is objecting to the practise which they used themselves... Clever, really clever...

Huh? Sony was buying small guys and founding own studios that trounce competitors.

Microsoft went "why don't I buy the biggest juggernaut of the gaming world".

How could you seriously refer to that as the same practice?

Activision Blizzard is a very profitable company but 60 billion USD is more of a fair price imo.

If Minecraft was worth 4+ billion, AB is well worth 60.

 

[S73fan]

The same job. Big corporations don't have to get bigger. I don't particularly like your grandfather

 

[dyonoctis]

There are days, like today, when I read comments like this and am so taken aback that I stop for a brief moment to wonder: "One of us has a firm grasp on things and the other is so far out of touch with reality that we come across as hilariously delusional, but which is which?"... Very brief moment indeed...

Tbh, it’s not like activision/blizzard by itself is a wonderful company with the interests of gamers at their heart. the worst that could happen is that they keep the exact same behaviour

 

[lexluthermiester]

Tbh, it’s not like activision/blizzard by itself is a wonderful company with the interests of gamers at their heart. the worst that could happen is that they keep the exact same behaviour

Your point would be what?

 

[dyonoctis]

Your point would be what?

A shit company is looking to buy another shit company, which might change nothing in the grand scheme of things besides a few more exclusive for Microsoft. Or maybe Phil Spencer is not that shitty, and blizzard might finally care about making games that are fun, and get out of the losing streak that they’ve been stuck in for a while. The current status quo is not ideal, and that might be why such a large company is looking to get acquired (even EA is looking to get acquired or merged with another company)

 

[zapster]

Theres a billion gaming companys, not any monoploy, this is weird or plain out stupid.

 

[Robin Seina]

Huh? Sony was buying small guys and founding own studios that trounce competitors.

Microsoft went "why don't I buy the biggest juggernaut of the gaming world".

How could you seriously refer to that as the same practice?

I was talking about Sony fearing exclusivities MS would gain if the transaction went through smoothly. Sony hoards many trademarks for themselves and they get irritated when MS buys whole publishing house to have more exclusive brands himself?

 

[AsRock]

Tbh, it’s not like activision/blizzard by itself is a wonderful company with the interests of gamers at their heart. the worst that could happen is that they keep the exact same behaviour

As they would never act like assholes and do what they do to drive the price down so some one would buy them would they ?.

 

[PapaTaipei]

I understand where the UK and EU are coming from. MS has a bad habit of monopolistic practices. I'm not saying they are a monopoly in the OS department though. There is always Linux but for the vast majority Linux has a very small adoption rate outside of servers.

Not only do they have monopoly, but they also buy our politicians and media here in EU. They gave 300 millions to media outlets like Le Monde and al in France.

 

[Robin Seina]

Not only do they have monopoly, but they also buy our politicians and media here in EU. They gave 300 millions to media outlets like Le Monde and al in France.

What monopoly? On their own platform? It depends solely on their own will, which game/publisher will they permit on their own console. Also MS has a tradition of releasing titles on PC and XBOX both (very often at the same), a thing which cannot be said about Sony (which only started doing so recently and only with select titles).
Also do not forget about other big publishers: Ubisoft, EA, Take2, Sega, THQ Nordic, Capcom... Does aquisition of Activision-Blizzard constitutes a monopoly of market, when all those remain? IMHO, hardly.

Edit: changed word "great" for "big", for better understanding

 

[lexluthermiester]

Also do not forget about other great publishers

Wait one moment...

Ubisoft, EA

...you just called Ubisoft and EA "great publishers"?!? Are you fricken kidding with that nonsense?

 

[Robin Seina]

Wait one moment...

...you just called Ubisoft and EA "great publishers"?!? Are you fricken kidding with that nonsense?

I called them great is sense of size, like "big", not in sense of "cool"

 

[lexluthermiester]

I called them great is sense of size, like "big", not in sense of "cool"

Fair enough. I would have just called them "Large".