The takeover of Activision Blizzard by Microsoft within the crosshairs of Brussels

The Microsoft brand on the Cell World Honest (MWC) in Barcelona, ​​March 2, 2022Josep LAGO

The acquisition of the American online game writer Activision Blizzard by Microsoft for 69 billion {dollars} is below risk from Brussels which fears an assault on competitors and introduced on Tuesday the opening of an in-depth investigation.

The European Fee, guardian of competitors within the EU, defined that it feared particularly that Microsoft may “lock entry to video video games from Activision Blizzard” for consoles and PCs, together with the well-known “name of Obligation” and that it’s tempted to place in place “methods to evict competing distributors”.

Such methods may result in “greater costs, decrease high quality and decreased innovation,” she mentioned in an announcement.

The Fee additionally fears that the wedding of the 2 giants will scale back competitors available in the market for PC working programs. She believes customers could be discouraged from shopping for PCs that do not run Home windows, Microsoft’s system made extra enticing by entry to Activision Blizzard video games.

The European govt introduced that it might “perform an in-depth investigation into the consequences of the operation, to be able to decide whether or not its preliminary fears are confirmed”.

He now has a interval of 90 days, till March 23, 2023 to decide. The opening of an in-depth investigation doesn’t prejudge the end result of the process, the Fee mentioned.

In a online game sector in full consolidation, Microsoft, which markets the Xbox console and has a number of growth studios, introduced in January the acquisition of Activision Blizzard, additionally writer of hits reminiscent of “World of Warcraft” and “Sweet Crush”. for 69 billion {dollars}, a report sum for the sector.

– “Official considerations” –

The operation ought to propel the American tech big to 3rd place on this planet on this trade when it comes to turnover, behind Chinese language Tencent and Japanese Sony, maker of the PlayStation.

“We proceed to work with the European Fee on subsequent steps and to deal with reliable market considerations,” a Microsoft spokesperson mentioned on Tuesday.

“Sony, as an trade chief, says they’re nervous about Name of Obligation, however we mentioned we’re dedicated to creating the identical sport accessible the identical day on Xbox and PlayStation. We would like folks to have extra entry to video games, no much less,” he mentioned.

For his half, the CEO of Activision Blizzard Bobby Kotick, mentioned he was assured that the operation could be accomplished by June 2023, as deliberate.

He identified that the group had already obtained the inexperienced gentle from nations reminiscent of Brazil.

However, earlier than Brussels, the UK’s competitors policeman introduced in September the opening of an in-depth investigation.

“On condition that so most of the world’s largest corporations at the moment are competing within the almost $200 billion gaming trade, it is comprehensible that regulators try to higher perceive this trade,” he mentioned. Mr Kotick.

The proposed takeover by Microsoft comes at a time when Activision Blizzard goes by a tough patch.

It reported Monday a 32% drop in internet revenue and a 14% drop in gross sales within the fourth quarter of its fiscal 12 months.