The UK antitrust officials have given their approval for Microsoft to proceed with its acquisition of Activision Blizzard, a major video game developer known for games like “Call of Duty” and “World of Warcraft.” This decision marks one of the largest tech deals in history. To address concerns about competition in the cloud gaming market, the companies agreed to relinquish certain cloud gaming rights. The Competition and Markets Authority (CMA) stated that this compromise is a “game-changer” that will promote competitive prices and better services for consumers.
Originally, the merger was blocked by the UK competition regulator in April due to concerns that Microsoft could make Activision’s games exclusive to its own platforms, thus limiting options for gamers and potentially increasing subscription costs. In response, Microsoft and Activision revised the deal, proposing a restructured merger that allowed the sale of Activision’s cloud streaming rights to a rival company outside of the European Union. This revision appeased the CMA, paving the way for the final approval of the acquisition. The CMA emphasized that the new deal will prevent Microsoft from monopolizing the cloud gaming market and enable cloud gaming providers to use non-Windows operating systems, reducing expenses and enhancing efficiency.
Activision Blizzard, known for its popular games like “Call of Duty” and “World of Warcraft,” is an influential player in the gaming industry. Microsoft, with its Xbox gaming console and Xbox Game Pass subscription service, aims to strengthen its position in the gaming market through this acquisition. The deal is expected to enhance Microsoft’s ability to compete with market leaders Tencent and Sony. Microsoft President Brad Smith expressed gratitude for the CMA’s thorough review and decision, stating that the final regulatory hurdle has been crossed, and the acquisition will now move forward.
