Team Blitz India
BRUSSELS: Microsoft Corp has won European Union (EU) antitrust approval for its $69 billion acquisition of Activision, in a significant boost that could prompt Chinese and South Korean regulators to follow suit despite a British veto of the deal. The US software giant still faces a battle to clinch the world’s biggest gaming industry takeover, however.
A final decision on a bid by Britain’s Competition & Markets Authority (CMA) to block it may take months. The US Federal Trade Commission’s case against the deal is also pending at the agency, though Japan approved it in March.
“Actually they significantly improve the condition for cloud game streaming compared to the present situation, which is why we actually consider them procompetitive”
EU antitrust chief Margrethe Vestager
Pro-competitive
The European Commission said the transaction was pro-competitive due to Microsoft’s agreement to licence popular Activision games such as “Call of Duty” to rival game streaming platforms.
Such licences are “practical and effective”, European Union antitrust chief Margrethe Vestager told reporters.
“Actually they significantly improve the condition for cloud game streaming compared to the present situation, which is why we actually consider them pro-competitive,” she added, contrasting with the UK position that the deal would hit competition in that part of the market. In rejecting the deal, the UK watchdog was seen as flexing its muscle on the global regulatory stage since Brexit.
Licensing deals
Microsoft has in recent months signed licensing deals with Nvidia, Nintendo, Ukraine’s Boosteroid and Japan’s Ubitus to bring Activision games to their platforms, should the deal go through.
“The European Commission has required Microsoft to license popular Activision Blizzard games automatically to competing cloud gaming services. This will apply globally and will empower millions of consumers worldwide to play these games on any device they choose,” said Microsoft President Brad Smith.
