Microsoft’s impending acquisition of Activision Blizzard is under scrutiny following concerns from EU regulators that the deal could harm competition in the gaming industry. To seek approval from the EU, Microsoft has presented a plan of remedies offering concessions that would address concerns about their market position. This article will explore the EU’s concerns and the proposed remedies Microsoft has put forth.
Microsoft has proposed remedies to gain antitrust approval from the European Union for its $69 billion purchase of Activision, according to a filing from the European Commission. The details of the remedies were not disclosed, but the EU competition regulator will request feedback from competitors and customers prior to making a decision by May 22. Microsoft President Brad Smith recently stated that the company was willing to offer licensing deals to ease competition concerns but would not sell Activision’s profitable Call of Duty franchise. In recent weeks, Microsoft has signed partnerships with three businesses to bring Call of Duty to different platforms. According to sources, the company is expected to receive clearance from the EU with these licensing agreements and other behavioural remedies, while it is unclear whether the UK competition regulator will do the same.
In conclusion, Microsoft’s proposed remedies have been submitted to the European Union, seeking approval for its acquisition of Activision Blizzard. The company has taken steps to address concerns related to competition, security, and innovation, while ensuring that the transaction will benefit consumers and the gaming industry as a whole. The decision of the European regulators will have a significant impact on the future of the gaming industry and the digital economy. It remains to be seen whether Microsoft’s efforts to secure approval will prove successful, but one thing is clear: the pace of consolidation in the tech sector shows no signs of slowing down.