Activision deal's initial EU antitrust examination found no remedies for Microsoft.
Before an anticipated extensive EU investigation, Microsoft Corp. has not provided any remedies to EU antitrust regulators looking into its proposed $69 billion acquisition of 'Call of Duty' developer Activision Blizzard.
The American software company hopes the acquisition would improve its ability to compete with market leaders Tencent and Sony, the latter of which has been critical of the agreement. The European Commission said its website was current and that it will complete its initial assessment of the agreement by Nov. Microsoft stated that it is still working with the Commission to determine the following actions and to resolve any legitimate market concerns, such those made by Sony.
Sony, the market leader, claims to be concerned about Call of Duty, but Microsoft has stated that it is dedicated to making the same game available on both Xbox and PlayStation on the same day. When companies are aware that regulators will subsequently launch a four-month inquiry, they often do not give remedies during the EU preliminary evaluation.
Whether Xbox creator Microsoft would make annual best-sellers like Activision's Call of Duty franchise exclusive to its platforms has been a big concern in the $69 billion takeover proposal. According to Reuters, citing an EC document, that is the question the European Commission is considering.
When it comes to negotiating power with Microsoft's cloud streaming service Xbox Game Pass, the enforcer is also pondering whether Activision's database of user information would give Microsoft a competitive edge in creating, producing, and distributing games.
When it comes to negotiating power with Microsoft's cloud streaming service Xbox Game Pass, the enforcer is also pondering whether Activision's database of user information would give Microsoft a competitive edge in creating, producing, and distributing games.
It also asked which of Microsoft's competitors would be the most appealing after the acquisition, with options such as Nvidia's GeForce Now, Sony's PlayStation, Amazon Luna, Facebook Gaming, and Google Stadia (GOOG) (GOOGL), which will soon be discontinued.
