The Microsoft acquisition of Activision Blizzard has been facing intense scrutiny since it was first announced back in January 2022. The road for the deal has been fairly rocky, with it being held up by antitrust authorities around the world. However, it looks like the EU European Commission will give the green light for the merger of Activision Blizzard by Microsoft.
European Commission insiders told Reuters that the regulatory agency will likely not require Microsoft to sell any assets in order to secure the $69 billion acquisition. It would also allow Microsoft to overcome any regulatory concerns by providing licensing deals to rival platforms and rival companies.
The move is important, as it would help ease antitrust concerns related to the merger. Several authorities have feared that Microsoft would be violating antitrust legislation with the deal.
The main fears have also been centered around Call of Duty, one of the highest selling video games every year and the main source of much of Activision’s profits. Sony mainly feared that Call of Duty being with Microsoft would make players switch to Xbox, thus harming PlayStation’s ability to compete.
Microsoft previously stated that it would not be selling Call of Duty, with president Brad Smith telling the EU that it would not be “feasible or realistic to think one game or one slice can be carved out from the rest.” Smith also cited that Sony had been dominating the console market for 20 years and that blocking the deal would only give Sony more power in the market, harming Xbox.
The tech giant has also made it clear that it would be committed to maintaining competition within the market with its deal. Microsoft has previously made it clear that Sony would continue to get Call of Duty releases on the same day as Xbox.
Microsoft also believes that the deal will bring large benefit to gamers, but there are still other committees that are skeptical. The FTC and the UK’s CMA are both on the opposing end of the deal so far. However, with the EC’s potential decision, this could change soon.
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