This is the first major disagreement between the EU and UK competition authorities since Britain left the EU.
of the European Union On Monday, the competition authorities gave the green light to the billion-dollar transaction between the software company Microsoft and the game company Activision Blizzard, reports news agency Reuters.
Among Activision Blizzard’s best-known products are games Call of Duty, World of Warcraft, Candy Crush and Overwatch.
Microsoft announced its intention to buy Activision Blizzard for around 68 billion euros as early as January 2022, but the transaction and its legality have since been discussed by competition authorities in different countries.
Take care in the competition authorities has been particularly caused by the fact that with the deal, Microsoft would theoretically have the opportunity to limit the distribution of the games of the company it bought only to its own platforms.
European Commission at the end of 2022 was considered in the preliminary investigationthat with the deal Microsoft would have the ability and possible financial incentive to prevent or hinder the activities of competing game distributors.
However, now Microsoft has promised to also offer ten-year licenses to competing cloud game services free of charge, which would enable them to continue distributing Activision Blizzard’s games.
Such a licensing model could even improve the availability of games from the current one and thereby promote competition instead of restricting it, the EU Competition Commissioner Margrethe Vestager commented on the positive decision in his press release.
of the EU the significance of the decision is increased, according to Reuters, by the fact that it may give direction to the competition authorities of China and South Korea, who have not yet announced their position on the giant deal.
The decision, on the other hand, had no effect on Britain’s decision. The country’s competition authority announced late last month that he opposes the deal after assessing that it weakens competition in the gaming industry.
“Although we respect the European Commission’s right to come to a different conclusion, we stand by our decision,” commented the head of the British Competition and Markets Authority Sarah Cardell EU’s decision in its statement.
This is the first major disagreement between the EU and UK competition authorities since Britain left the EU.
Provided the competition authority of a country does not approve the deal, it means that Microsoft would no longer be able to operate in that country, if it were to buy Activision Blizzard despite the ban.
Also the US Trade Commission announced last year seeking to prevent trade.
In Japan, on the other hand, the deal was approved in March, despite the fact that the Japanese Sony, which manufactures the Playstation console that competes with Microsoft’s Xbox, has been particularly concerned about the deal.
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