Microsoft announced its plans to acquire the Call of Duty maker activism blizzard In 2022 in a record $ 69 billion deal. Since the announcement, the deal has been scrutinized by regulatory bodies in several countries. Some countries like the UK have blocked the deal. However, others like European Union The biggest gaming deal ever has been approved. In a report shared by the European Union, its opposition leaders Margaret Vestager Microsoft’s acquisition explained activision Blizzard was cleared.
Why the EU approved Microsoft’s Activision Blizzard deal
Vestager clarified that EU regulators are at loggerheads with the UK’s CMA over Microsoft’s 10-year measure to allow Activision games to be streamed. She also said the deals have “significant competitive effects”. Vestager ended the speech by discussing fair competition.
Read Margaret Vestager’s full speech about the deal here:
“There is no doubt that this was a landmark transaction in the gaming industry. Gaming is a dynamic market that affects millions of consumers in Europe. This transaction therefore deserves in-depth scrutiny. Watched – whether they play on PC, console, or their phone. We focused on the growth of cloud streaming, which will play an increasing role in how consumers access games.
An important finding was that the overall market share for Microsoft and Activision was generally low in Europe. It is only when you look at specific segments like ‘Shooter Games’ that you get above 20%. and for peace, Sony Microsoft sells four times as many PlayStations as PlayStation xbox,
In this context, we did not think that the merger raised any vertical issues. I’m told that Call of Duty is a very popular shooter franchise. But we figured that Microsoft probably won’t be shooting itself in the foot by stopping selling Call of Duty games to the much larger PlayStation player base. Our colleagues at CMA agreed with us and ultimately came to the same conclusion.
Where we had concerns was in cloud gaming – still a nascent market but one we expect to grow, as it offers many advantages for gamers. For one, it enables gamers to open up games from specific devices – which means more accessibility and less cost. That’s why cloud gaming deserves a thorough evaluation. This was a common concern because, like us, the CMA focused on this market.
We were concerned that Microsoft would make Activision games exclusive to its cloud gaming service. This would have hindered access to games and cemented Windows’ position as an operating system.
Where we parted ways with CMA was on measures. We have accepted a free 10-year license to allow consumers to stream all Activision games for which they have a license through any cloud service. And why did we do this instead of stopping the merger? Well, for us, this solution addressed our concerns perfectly. And on top of that, it had significant competitive implications.
Consider the pre-merger situation, where Activision didn’t license its games to cloud services. So, in this case, the measure opens the door for smaller cloud services in the EU to offer big games on their platforms, widening options for gamers. The merits of this measure were recognized across the spectrum – by developers, by cloud gaming providers, by distributors and of course by consumer groups as well. And that’s because it unlocked the potential of the cloud market.
In conclusion, I would like to say a few words about cooperation. Despite the differing results, the collaboration with other agencies around the world on the Microsoft/Activision review was excellent. This included not only the UK, but also Canada, the US, Australia and New Zealand.
Why the EU approved Microsoft’s Activision Blizzard deal
Vestager clarified that EU regulators are at loggerheads with the UK’s CMA over Microsoft’s 10-year measure to allow Activision games to be streamed. She also said the deals have “significant competitive effects”. Vestager ended the speech by discussing fair competition.
Read Margaret Vestager’s full speech about the deal here:
“There is no doubt that this was a landmark transaction in the gaming industry. Gaming is a dynamic market that affects millions of consumers in Europe. This transaction therefore deserves in-depth scrutiny. Watched – whether they play on PC, console, or their phone. We focused on the growth of cloud streaming, which will play an increasing role in how consumers access games.
An important finding was that the overall market share for Microsoft and Activision was generally low in Europe. It is only when you look at specific segments like ‘Shooter Games’ that you get above 20%. and for peace, Sony Microsoft sells four times as many PlayStations as PlayStation xbox,
In this context, we did not think that the merger raised any vertical issues. I’m told that Call of Duty is a very popular shooter franchise. But we figured that Microsoft probably won’t be shooting itself in the foot by stopping selling Call of Duty games to the much larger PlayStation player base. Our colleagues at CMA agreed with us and ultimately came to the same conclusion.
Where we had concerns was in cloud gaming – still a nascent market but one we expect to grow, as it offers many advantages for gamers. For one, it enables gamers to open up games from specific devices – which means more accessibility and less cost. That’s why cloud gaming deserves a thorough evaluation. This was a common concern because, like us, the CMA focused on this market.
We were concerned that Microsoft would make Activision games exclusive to its cloud gaming service. This would have hindered access to games and cemented Windows’ position as an operating system.
Where we parted ways with CMA was on measures. We have accepted a free 10-year license to allow consumers to stream all Activision games for which they have a license through any cloud service. And why did we do this instead of stopping the merger? Well, for us, this solution addressed our concerns perfectly. And on top of that, it had significant competitive implications.
Consider the pre-merger situation, where Activision didn’t license its games to cloud services. So, in this case, the measure opens the door for smaller cloud services in the EU to offer big games on their platforms, widening options for gamers. The merits of this measure were recognized across the spectrum – by developers, by cloud gaming providers, by distributors and of course by consumer groups as well. And that’s because it unlocked the potential of the cloud market.
In conclusion, I would like to say a few words about cooperation. Despite the differing results, the collaboration with other agencies around the world on the Microsoft/Activision review was excellent. This included not only the UK, but also Canada, the US, Australia and New Zealand.