In his comments to the BBC, Smith said the "English Channel has never seemed wider" as he compared the United Kingdom unfavorably with regulators for the 27-nation European Union, who are due to make a decision on the Activision deal in May. "A number of jurisdictions are coming to realize that their effectiveness increases if they operate as a coalition," Kovacic said. Not only that, but some of the dozens of nations with antitrust laws are increasingly talking with each other. Kovacic said the "halo effect" of pitching itself as a good partner with governments only goes so far if the regulator believes a deal could harm competition. Behind the heightened attention on technology companies is a belief that regulators were too weak over the past two decades in preventing monopolies. They're seen as being more reasonable, thoughtful."īut it's not just Microsoft that has changed. "They're seen as being in a different category than the other well-known information technology giants. It would also establish Microsoft as the world’s third largest video game company by revenue."That generated a great deal of goodwill for them around the world," Kovacic said. If approved, the $68.7 billion transaction would mark the largest-ever acquisition in the history of the tech industry. The FTC is concerned the deal would reduce competition in the cloud gaming and video game console markets. Federal Trade Commission filed suit to block the transaction on antitrust grounds. ![]() The deal is also facing scrutiny in the U.S. A few weeks before it decided to block the transaction, CMA narrowed the probe to focus only on the latter market. Originally, the CMA was concerned the deal could hurt both the video game console and the cloud gaming segments. The regulator brought the decision as part of an antitrust probe that was opened last year. CMA officials believe Microsoft’s purchase of Activision Blizzard could harm rivals in the nascent cloud gaming market. The Competition and Markets Authority, or CMA, last month blocked the transaction over concerns it may negatively impact competition. The deals are meant to ensure that Activision Blizzard games will continue to be available on those rivals’ platforms.Īlthough the agreements are expected to win over EU officials, they failed to convince the U.K.’s antitrust regulator. EU regulators opened the antitrust probe over concerns that Microsoft may limit the availability of Activision Blizzard’s games on competing platforms.Īccording to Reuters, officials are moving to approve the deal because of a series of recent licensing deals that Microsoft has inked with several rivals. The company also supports a number of competing platforms. ![]() The EU’s reported plan to approve the deal could bring Microsoft one step closer toward closing it.Īctivision Blizzard makes its games available on Microsoft’s Xbox consoles, Xbox Cloud Streaming cloud gaming service and Windows. ![]() Theoretically, such a probe can lead to the cancellation of the acquisition under investigation. Regulators sought to determine whether Microsoft’s purchase of Activision Blizzard may harm competitors in the video game market. In November of the same year, the EU launched an antitrust probe into the deal. Microsoft first announced its plans to buy it last January. Last quarter, the company generated $2.38 billion in revenue from 368 million monthly active users. The deadline for the decision is May 22.Īctivision Blizzard is one of the world’s largest video game developers. Reuters today cited sources as saying that the EU will likely approve the $68.7 billion deal on Monday. as early as next week, according to a new report. The European Union could greenlight Microsoft Corp.’s acquisition of Activision Blizzard Inc.
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