In its announcement, the European Commission outlined the elements that led to it opening an in-depth investigation. A preliminary inquiry raised issues across the deal lowering competitors within the online game and console distribution markets; the Commission additionally famous potential points surrounding the marketplace for PCs, writing that the merger may “discourage users [from buying] non-Windows PCs.”
“We must ensure that opportunities remain for future and existing distributors of PC and console video games, as well as for rival suppliers of PC operating systems,” wrote Margrethe Vestager, govt vp in control of competitors coverage. “The point is to ensure that the gaming ecosystem remains vibrant to the benefit of users in a sector that is evolving at a fast pace.”
The Commission has till March 23 to decide on the deal.
Sony, considered one of Microsoft’s major rivals within the online game business, has warned regulators that the merger might give Microsoft an unparalleled benefit within the business by giving the corporate management of the profitable Call of Duty franchise. Microsoft, in flip, has tried to assuage regulators’ issues by saying it will not limit entry to Call of Duty video games, and would pursue a method related to the one it has adopted with “Minecraft,” one other common sport it owns. “Minecraft” is available on hottest consoles and platforms.
“We’re continuing to work with the European Commission on next steps and to address any valid marketplace concerns,” Microsoft spokesperson David Cuddy advised The Washington Post. “Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.”
Still, some antitrust students and regulators have grown cautious of unenforceable guarantees.
“I don’t know for sure that Microsoft would remove Call of Duty from the PlayStation — it might not benefit them — but they might,” Mitch Stoltz, senior employees legal professional for nonprofit digital rights group Electronic Frontier Foundation, advised The Post final week. “If they did decide to remove Call of Duty from the PlayStation, the antitrust enforcers couldn’t stop them unless they had made a binding promise not to do that. Essentially, the merger is the antitrust enforcers’ only opportunity to stop Microsoft from making Call of Duty exclusive to the Xbox, so I’m not surprised they’re raising it now.”
Activision Blizzard CEO Bobby Kotick emailed workers Tuesday morning with an replace about Microsoft’s pending acquisition, reaffirming his expectation that the deal would shut in June 2023.
“We will continue to cooperate with the European Commission where, in the countries they represent, we have many employees,” Kotick wrote in a letter additionally posted to the investor relations web site. “We have been working closely with Microsoft to actively engage regulators in other key countries to answer their questions and provide them with information to assist with their review. People from across our business units and functions have been involved in this regulatory work.”
This is a growing story and it is going to be up to date.