The European Commission is reportedly on the verge of approving Microsoft’s acquisition of Activision Blizzard, a deal valued at just under $70 billion. This development comes as a surprising twist, as the merger was recently rejected in the UK.
Although not yet official, the information comes from a reliable source. Reuters, citing its own informants, reported the news. The most likely announcement date is slated for Monday, May 15th.
Microsoft’s Agreements with Competitors
https://www.youtube.com/watch?v=oJca6zoI50E
EU officials are said to be convinced of Microsoft’s intentions after the American corporation signed various agreements with competitors to distribute games. These agreements involve companies like Nintendo and Nvidia, as well as lesser-known names such as Ukraine’s Boosteroid and Japan’s Ubitus, and even the British EE mobile network, which has minimal involvement in the gaming industry.
The European Commission had set a deadline of May 22nd for making a decision on the merger. In March, Japan approved the acquisition, and other countries like Ukraine, Chile, Brazil, and South Africa expressed no objections. The EU and the United States are now the key players to watch.
Legal Challenges in the United States and the UK
The US Federal Trade Commission (FTC) has decided to file a lawsuit to block the transaction. This decision was made earlier in the year, meaning Microsoft now faces two court battles—one in the US and another in the UK. The company is preparing its defense with the help of prominent lawyers.
An intriguing aspect of this complex case is the FTC’s decision to sue early, seemingly in an attempt to persuade counterparts in other parts of the world to reject the merger as well. While this tactic worked in the UK, it appears that the EU is charting its own course on the matter.