Last month, regulators from the United Kingdoms Competition and Markets Authority voted no on the $69 billion deal for Microsoft to acquire Activision Blizzard. All but seemingly the deal was dead, but the European Union has stepped up to the table and has approved the deal. It seems there could be some momentum for these companies to salvage the deal and get it done.
Contrary to what the UK said, the EU noted that the deal would generate more competition in the video game industry. “The commitments fully address the competition concerns identified by the Commission and represent a significant improvement for cloud gaming as compared to the current situation.” They continued, “As always, the Commission has based its decision on hard evidence, and on extensive information and feedback from competitors and customers, including from game developers and distributors as well as cloud game streaming platforms in the EU.”
The UK noted that Microsoft and this acquisition, would sabotage the innovation in cloud gaming. They also said that Game Pass has the most cloud gamers and if Microsoft were to make Call of Duty exclusive to their service it could make it impossible for others to compete in the space.
The CMA has fired back after the EU ruling. Sarah Cardell, CEO of the CMA stated “The UK, US and European competition authorities are unanimous that this merger would harm competition in cloud gaming, the CMA concluded that cloud gaming needs to continue as a free, competitive market to drive innovation and choice in this rapidly evolving sector.” Cardell continued, “Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years. They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.”
It seems like there is a showdown brewing between Microsoft and the UK CMA. What do you think about the deal? I don’t see an issue with this deal. If they are going to continue offering Call of Duty to other systems for at least 10 years it signifies Microsoft willing to play ball. I also think that Microsoft could be exiting the console market in the future as even Phil Spencer has said that they cant take over Sony or Nintendo. They could go to a gaming service model which is seemingly what they are going towards. This would allow Game Pass to be on Switch and PlayStation and other devices. What do you think about the new live being brought into the Microsoft Activision Blizzard deal? Let us know in the comments below or hit us up on our Twitter account by clicking here. As always stay tuned to Culture Splat for more content coming at you!
