The EU watchdog said Microsoft has offered free 10-year license deals to European consumers and cloud game streaming services for Activision’s PC and console games.
According to the Commission, Microsoft’s proposals include that players who bought or will buy an Activision game will be able to stream those titles on any cloud gaming platform of their choice regardless of whether it is from one company or another.
On the other hand, the agency also highlighted that the acquisition of Activision would not mean a problem for competition in the console market, since Sony has a broad dominance there, thanks to the PlayStation, while Xbox sales have remained back.
A blow to the decision of the CMA, which maintains its position
This EU decision comes a couple of weeks after the UK’s Competition and Markets Authority (CMA) blocked the largest transaction in the video game industry. Given this, Microsoft has launched an appeals process around the UK block, but this litigation is likely to last several more months.
The CMA’s arguments for stopping the purchase were that Microsoft’s solutions would not put an end to concerns in the cloud gaming market, noting that if the deal is allowed, there is a risk that innovation in this industry will be undermined. upright that is just blooming.
The CMA’s concern regarding the cloud and mobile gaming sector is due to the fact that they are two of the most important for the future of the industry. According to gaming consultancy Newzoo, the mobile and cloud gaming market is expected to generate $103.1 billion and $8.2 billion, respectively, by 2025.
After learning the position of the European Commission, the CMA criticized the bloc’s regulators and maintained its position to prevent the purchase from taking place, as it stressed that in case of allowing it, “Microsoft may establish the terms and conditions for this market over the next 10 years,” said CMA Executive Director Sarah Cardell.
“It would replace a free, open, and competitive marketplace with one subject to continued regulation of the games Microsoft sells, the platforms it sells them to, and the terms of sale. It is one of the reasons why the independent panel of the CMA rejected the proposals and prevented this agreement, ”he said in a statement.
What will happen now with the Microsoft-Activision agreement?
With the EU decision, the acquisition of Activision has become more complex and now it remains to wait for other regulatory bodies to give the go-ahead and it can be carried out. Specifically, the US Federal Trade Commission (FTC) is one of the tougher players.
So far, regulators in Saudi Arabia, Brazil, Chile, Serbia, Japan and South Africa have already approved the deal, while other countries including China, South Korea, New Zealand and Australia are still reviewing it.
With information from Reuters