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Microsoft's acquisition of Activision Blizzard is one of the most controversial deals of this decade so far. Back in January 2022, Microsoft expressed its intentions to acquire the latter for a whopping $68.7 billion. However, the deal is yet to be approved by regulatory bodies worldwide. Moreover, Sony, a competitor of MS in the gaming space (Xbox), has raised concerns over this deal as it might be anti-competitive in nature.
Activision Blizzard has several popular video game titles under its belt. Call of Duty, Overwatch, and Diablo are to name a few. Since MS owns Xbox, this deal might lead to most of these titles being exclusive to the platform. As a result, the deal is often deemed by several institutions to be against gamers' interests.
So far, several regulatory bodies worldwide, including the US FTC, UK CMA, and EU Merger Control Commission, have had their say.
EU Merger Control Commission gives the green light to Microsoft's acquisition of Activision Blizzard subject to conditions
EU Merger Control Commission has approved the deal between Microsoft (MS) and Activision Blizzard (ABK) under certain conditions. First, a free license is to be provided to all consumers in the European Economic Area, allowing them to play any ABK game they own via any cloud gaming service.
Secondly, a free license is to be provided to all the cloud gaming service providers in the European Economic Area to allow all gamers from the region to stream any ABK game. Only if the above conditions are met, then the acquisition can go through.
Previously, UK's CMA rejected the acquisition citing concerns over cloud gaming, stating that this would lead to MS establishing a monopoly in the UK market and wasn't competitive in nature.
UK CMA rejects Microsoft's acquisition of Activision Blizzard
Previously, UK's CMA rejected the acquisition deal between the two parties. The primary concern for the CMA board was cloud gaming. Cloud gaming as a service is growing rapidly and is likely to be a huge industry in the future as the tech improves and more people have access to high-speed internet.
However, according to the CMA, if the deal goes through, MS would have the upper hand and might lead to a monopoly in the market with so many popular titles under its belt.
After EU Merger Control Commission gave its approval (subject to conditions), CMA commented on the decision. They stated that both regulatory bodies identified the same concerns over the rise of cloud gaming and MS being the dominant force.
However, the CMA believes the remedies or the conditions EU Merger Control Commission sets out aren't appropriate for the UK market, and as a result, it was rejected.
US FTC blocks Microsoft's acquisition of Activision Blizzard
The Federal Trade Commission sued Microsoft/Activision Blizzard over the deal as it considers it anti-competitive. According to the legal body, ABK has several high-quality games in its portfolio with millions of players worldwide. With MS owning the latter, most of these titles might become Xbox/Windows PC exclusives only, which will lead to unfair advantages in the marketplace.
According to the FTC, the deal would "suppress" its competitors in the console market as well as cloud gaming service.
This is all there is to know about the deal between Microsoft and Activision Blizzard. Follow Sportskeeda's Esports and Gaming section for the latest and exciting developments among the two industry giants.
