Last Update: May 16, 2023, 12:57 pm IST
Microsoft continues to battle deal with regulators
Microsoft Corp on Monday won EU antitrust approval for its $69 billion acquisition of Activision, in a significant boost that could prompt Chinese and Korean regulators to follow suit despite a British veto of the deal.
BRUSSELS: Microsoft Corp on Monday won EU antitrust approval for its $69 billion acquisition of Activision in a significant boost that could prompt Chinese and Korean regulators to follow suit despite a British veto of the deal.
The US software giant is still facing a battle to secure a deal. It has until May 24 to appeal a decision by the UK’s Competition and Markets Authority (CMA) to block it. A final decision may take months. A US Federal Trade Commission case against the deal is also pending with the agency.
The European Commission said the biggest ever deal in gaming was competitive because of Microsoft’s licensing deals, confirming a Reuters report in March.
Such licenses are “practical and effective”, EU antitrust chief Margrethe Vestager told reporters.
“In fact they significantly improve the state of cloud game streaming compared to the current state, which is why we really consider them pro-competitive,” he said.
Microsoft has offered a free 10-year licensing deal for Activision’s PC and console games to European consumers and cloud game streaming services, the EU watchdog said.
Microsoft has signed similar deals in recent months with Nvidia, Nintendo, Ukraine’s Boosteroid and Japan’s Ubitus to bring Activision’s Call of Duty to their gaming platforms.
Microsoft President Brad Smith said, “The European Commission requires Microsoft to automatically license popular Activision Blizzard games to competing cloud gaming services. This will apply globally and allow millions of consumers around the world to access these games.” Will empower you to play on any device.”
Vestager said the commission has a different assessment on how the cloud gaming market will grow, unlike the UK.
“They see that this market is developing faster than we thought,” she said. “There’s a bit of a dichotomy here, because we think the measures we’ve put in place will allow us to license many more people in the cloud gaming markets.”
The UK Competition and Markets Authority said it stood by its veto. Microsoft will appeal to the Competition Appeal Tribunal, whose decision is expected to take months.
The other remaining major hurdle is the US Federal Trade Commission which is seeking to block it. Japan approved the acquisition in March.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed)