The takeover of Activision Blizzard by Microsoft is no longer in the way. The British antitrust authority CMA gives the green light.
“Today we officially welcome Activision Blizzard and their teams” – this message from Xbox boss Phil Spencer ends a long struggle. For almost two years, the takeover was on the back burner. Now the British Competition and Markets Authority (CMA) gives the green light as the last hurdle. At 68.7 billion US dollars, it is the biggest deal in video game history – with a long run-up.
Nearly twelve months between green light and red light
Already announced in January 2022, Microsoft’s plan faced headwinds. Sony, the aforementioned British competition authority as well as the American antitrust authority Federal Trade Commission (FTC) expressed concerns.
It was feared that the takeover could give Microsoft too much market power. An example of this was the possible exclusivity of the shooter Call of Duty (CoD). This has great relevance for Sony. Modern Warfare 2, for example, is the second and third best-selling game on PlayStation systems in 2022.
FTC arguments had been “unconvincing “
In December, the FTC finally filed a lawsuit, but to no avail. “Insufficient” was how a Californian court described the US competition watchdog’s arguments. “The evidence suggests that consumers would have greater access to Call of Duty and other Activision content,” it said in a statement.
This assessment was based on some previously concluded partnerships that were to take effect upon acquisition. Envisioned were: Microsoft releasing Xbox Game Studios PC games for use on Nvidia GeForce Now, “Call of Duty and more” being added to the Ubisoft+ portfolio, and Call of Duty appearing on the Nintendo Switch.
Sony bites the bullet – Ubisoft deal to show the way
Finally, Sony and Microsoft also agreed on a ten-year deal whereby Call of Duty would continue to appear on the PlayStation. Sony bit the bullet, however, because Microsoft had already made an offer in January 2022 – on better terms. The agreement now negotiated only includes CoD. Other Activision-Blizzard titles such as Overwatch or Diablo are not part of it.
That cloud streaming rights went to Ubisoft+ also cleared concerns at the CMA. “The new agreement will prevent Microsoft from restricting competition in the cloud gaming market, which is gaining momentum,” the UK competition regulator said. Unlike the CMA, however, the FTC is still trying to stop the deal. A hearing before the Ninth Circuit Court of Appeals is scheduled for 6 December. It is possible that the last word has not yet been spoken regarding the takeover of Activision Blizzard by Microsoft. However, a U-turn would have far-reaching consequences.
