The European Union has gone the way of the Competition and Markets Authority and has not authorized Microsoft’s deal with Activision Blizzard. European officials do not believe that the merger of the two corporations will be a good thing for the gaming market.
The European Union refused to approve the deal between Microsoft and Activision Blizzard. The officials from Europe argue their decision similarly to UK’s CMA, there were concerns about the actions of the Redmond corporation, which could block access to Call of Duty on other platforms:
“In particular, the Commission is concerned that by acquiring Activision Blizzard, Microsoft may block access to Activision Blizzard’s games for consoles and personal computers, especially to high-profile and highly successful games (so-called ‘AAA’ productions) such as Call of Duty.”
Currently, MEP has opted to perform a preliminary investigation, one that suggests Microsoft may decide to block Activision Blizzard games because they will be counting on the money:
“The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in blocking strategies against competing game distributors, such as preventing these companies from distributing Activision Blizzard’s games for consoles or impairing the conditions of use or access to these video games.”
The European Commission has launched Phase 2 of its investigation at the same time. There will be a more detailed investigation to either confirm or deny concerns that Microsoft would block access to games on competing platforms – the PlayStation 5 or PlayStation 4 – by buying Activision Blizzard.
In the end, European officials are looking to give approval or block the deal by March 23, 2023. What do you think about all this? Let us know in the comments section below.
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