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Microsoft's $68.7 billion deal to acquire Activision Blizzard has been approved by EU regulators today - rumors emerged late last week that the bloc's executive arm, the European Commission, would give the takeover bid a thumbs up this week, with early indications that May 15 would be the day of declaration. EU antitrust regulators have let the acquisition pass due to commitments/reassurances from Microsoft relating to the cloud gaming sector. This is in sharp contrast to the UK's Competition and Markets Authority (CMA) organization's judgment, who chose to block the deal in late April and have since added restrictions (as of late last week) via a new interim order.
EU antitrust regulators have found that Microsoft "would have no incentive to refuse to distribute Activision's games to Sony" and that "even if Microsoft did decide to withdraw Activision's games from the PlayStation, this would not significantly harm competition in the home gaming console market." But the European Union's competition regulators have found points of concern (much like the UK CMA's further investigations) and reckon that the segment could be disrupted in the area of cloud gaming services - on PC and console platforms. The body has received the promise of several remedies from Microsoft - these matters will be resolved through flexible terms - including a free license to consumers in EU countries that will grant stream access to "any cloud game streaming services of their choice" - with the ownership of Activision Blizzard PC and console titles (current and future). Cloud providers operating within EU markets will also be offered a free license to stream the Acti-Blizz library.
Microsoft has been busy making 10-year licensing deals with games distribution services and its competitors in recent times - for example Sony and Nintendo have been offered the Call of Duty franchise as part of a ten year agreement. Margrethe Vestager, executive vice president of competition policy at the European Commission states: "Our decision represents an important step in this direction, by bringing Activision's popular games to many more devices and consumers than before thanks to cloud game streaming. The commitments offered by Microsoft will enable for the first time the streaming of such games in any cloud game streaming services, enhancing competition and opportunities for growth." Activision Blizzard has not licensed its library for distribution on cloud gaming services - the giant games publisher (and development) group prefers its current model of direct digital sales as well as physical product launches.
The USA government's Federal Trade Commission (FTC) is due to deliver its own verdict in August of this year - Microsoft is anticipating a blockage in its home nation - the FTC has long indicated that it does not approve of the proposed merger with Activision Blizzard.
View at TechPowerUp Main Site | Source
EU antitrust regulators have found that Microsoft "would have no incentive to refuse to distribute Activision's games to Sony" and that "even if Microsoft did decide to withdraw Activision's games from the PlayStation, this would not significantly harm competition in the home gaming console market." But the European Union's competition regulators have found points of concern (much like the UK CMA's further investigations) and reckon that the segment could be disrupted in the area of cloud gaming services - on PC and console platforms. The body has received the promise of several remedies from Microsoft - these matters will be resolved through flexible terms - including a free license to consumers in EU countries that will grant stream access to "any cloud game streaming services of their choice" - with the ownership of Activision Blizzard PC and console titles (current and future). Cloud providers operating within EU markets will also be offered a free license to stream the Acti-Blizz library.
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Microsoft has been busy making 10-year licensing deals with games distribution services and its competitors in recent times - for example Sony and Nintendo have been offered the Call of Duty franchise as part of a ten year agreement. Margrethe Vestager, executive vice president of competition policy at the European Commission states: "Our decision represents an important step in this direction, by bringing Activision's popular games to many more devices and consumers than before thanks to cloud game streaming. The commitments offered by Microsoft will enable for the first time the streaming of such games in any cloud game streaming services, enhancing competition and opportunities for growth." Activision Blizzard has not licensed its library for distribution on cloud gaming services - the giant games publisher (and development) group prefers its current model of direct digital sales as well as physical product launches.
The USA government's Federal Trade Commission (FTC) is due to deliver its own verdict in August of this year - Microsoft is anticipating a blockage in its home nation - the FTC has long indicated that it does not approve of the proposed merger with Activision Blizzard.
View at TechPowerUp Main Site | Source