Summary:
The acquisition of Activision Blizzard by Microsoft has been a topic of much debate and anticipation in the gaming industry. In recent developments, Microsoft has secured approval from the European Commission, a significant milestone in the regulatory process.Â
We delve into the details of the approval, the concessions made by Microsoft, and the ongoing concerns expressed by the UK Competition and Markets Authority. Furthermore, it discusses the pending approvals required from the US Federal Trade Commission and the UK Competition and Markets Authority. Additionally, the article explores Microsoft’s commitment to bringing major Activision Blizzard franchises, such as Call of Duty, to Nintendo consoles. This comprehensive coverage sheds light on the implications of this acquisition on the gaming landscape and the future of cloud gaming services.
Microsoft’s Acquisition of Activision Blizzard
The gaming world has been abuzz with news of Microsoft’s ambitious plan to acquire gaming giant Activision Blizzard. The multi-billion dollar deal has drawn significant attention and scrutiny from regulatory bodies worldwide. In recent developments, Microsoft achieved a significant milestone in the approval process by securing the endorsement of the European Commission.
European Commission Approval and Concessions
The European Commission’s approval of the Microsoft-Activision Blizzard deal marks a crucial step forward. To address competition concerns, Microsoft made significant concessions that were deemed satisfactory by the Commission. These concessions aim to promote fair competition and benefit European gamers.
Concessions to address competition concerns
Microsoft’s concessions revolve around ensuring a level playing field for gaming subscription services and cloud gaming platforms. European gamers will have the freedom to stream their owned Activision Blizzard games through any cloud gaming service of their choice. This move breaks down barriers and expands options for gamers, fostering healthy competition in the market.
Empowering European gamers and streaming rights
The European Commission believes that the concessions made by Microsoft will empower millions of European gamers. They will now have the liberty to access and stream Activision’s popular games using any cloud gaming service operating within the European Economic Area (EEA). This decision promotes consumer choice and stimulates the growth of cloud game streaming technology in the region.
UK Competition and Markets Authority’s Objections
While the European Commission’s decision was met with approval, the UK Competition and Markets Authority (CMA) expressed strong objections to the deal. The CMA believes that approving the acquisition would grant Microsoft an unprecedented level of control over the Cloud Gaming landscape.
Concerns over granting Microsoft too much control
The CMA’s independent panel group rejected Microsoft’s proposals and raised concerns about the long-term implications of the deal. Granting Microsoft the authority to set terms and conditions for the gaming market could stifle competition and innovation. The CMA’s dissenting voice adds a layer of complexity to the regulatory landscape surrounding the acquisition.
Disagreement with the European Commission’s decision
The CMA’s objections also stem from its disagreement with the European Commission’s approval. Despite recognizing the European Commission’s right to a differing opinion, the CMA stands firm in its decision to reject Microsoft’s proposals. This difference of opinion highlights the intricacies and divergent viewpoints among regulatory bodies.
Pending Approvals: US Federal Trade Commission and UK Competition and Markets Authority
While the European Commission’s approval is a significant milestone, Microsoft’s acquisition of Activision Blizzard still awaits clearance from two more regulatory bodies—the US Federal Trade Commission (FTC) and the UK Competition and Markets Authority (CMA). These pending approvals are crucial steps in the process and will determine the fate of the acquisition.
Microsoft’s Commitment to Nintendo Consoles
As part of their bid to gain regulatory approval, Microsoft has made a commitment to bring major Activision Blizzard franchises, such as Call of Duty, to Nintendo consoles. This move aims to expand the availability of these popular games to a wider audience and diversify the gaming landscape. If the deal receives final approval, Nintendo console owners can look forward to enjoying the immersive gaming experience offered by Activision Blizzard titles.
Conclusion
The approval from the European Commission marks a significant milestone for Microsoft’s acquisition of Activision Blizzard. The concessions made by Microsoft aim to address competition concerns and empower European gamers by providing them with more choices in cloud gaming services. However, the objections raised by the UK Competition and Markets Authority highlight the complexities and differing viewpoints within the regulatory landscape. As the acquisition awaits clearance from the US Federal Trade Commission and the UK Competition and Markets Authority, the future of this deal remains uncertain. Meanwhile, gamers and industry enthusiasts eagerly anticipate the potential impact on the Cloud Gaming market and the availability of Activision Blizzard franchises on various platforms.
FAQs
- Q1. Will European gamers have the freedom to stream Activision Blizzard games using any cloud gaming service?
- A1. Yes, as per the concessions made by Microsoft and approved by the European Commission, European gamers will have the freedom to stream Activision Blizzard games through any cloud gaming service operating within the European Economic Area (EEA).
- Q2. What are the pending regulatory approvals needed for Microsoft’s acquisition of Activision Blizzard?
- A2. The acquisition still requires clearance from the US Federal Trade Commission (FTC) and the UK Competition and Markets Authority (CMA).
- Q3. Why did the UK Competition and Markets Authority object to the acquisition?
- A3. The UK CMA objected to the acquisition due to concerns over granting Microsoft excessive control over the Cloud Gaming landscape. They believe it could stifle competition and negatively impact market dynamics.
- Q4. How will Microsoft’s acquisition affect the availability of Activision Blizzard games on Nintendo consoles?
- A4. Microsoft has committed to bringing major Activision Blizzard franchises, including Call of Duty, to Nintendo consoles if the acquisition receives final approval. This move aims to expand the availability of these games to a wider audience.
- Q5. What impact will this acquisition have on the Cloud Gaming market?
- A5. The acquisition has the potential to shape the Cloud Gaming market significantly. It could lead to increased competition, innovation, and the availability of popular games on various cloud gaming platforms, benefitting gamers and the industry as a whole.
