EU antitrust regulators have extended the deadline for making a decision on Microsoft’s $69 billion acquisition of Activision, the maker of popular video game Call of Duty. The new deadline is set for April 25, according to a filing from the European Commission.
Microsoft announced the deal with Activision Blizzard in January last year, aiming to better compete with industry leaders Tencent and Sony. However, the acquisition has faced regulatory hurdles in Europe, Britain, and the United States.
To address concerns raised by the EU competition enforcer, Microsoft is expected to propose remedies in the near future.
In a separate agreement last month, Microsoft struck a 10-year deal with Nvidia to bring Activision games, including Call of Duty, to its gaming platform. The completion of the acquisition would enable Microsoft to offer more options for consumers to access games under its control. However, regulators worldwide have expressed skepticism towards the deal.
In February, Britain voiced concerns that the acquisition could harm gamers by reducing competition between Xbox and PlayStation, resulting in higher prices, limited choices, and less innovation. Sony, a major competitor, strongly opposes the Microsoft-Activision deal, calling it “bad for competition, bad for the gaming industry, and bad for gamers themselves.” Other companies, including Google’s parent company Alphabet, have also expressed concerns to the FTC about the deal.
Microsoft has assured that it will continue to keep Call of Duty available on Sony’s PlayStation. The game franchise remains highly popular, with the latest installment achieving $1 billion in sales within its first 10 days.
According to Microsoft, the acquisition of Activision Blizzard is not solely about Call of Duty. The company aims to leverage Activision’s portfolio, which includes games like Overwatch and Candy Crush, to enhance its growth in mobile, PC, cloud gaming, and consoles. This would position Microsoft as a stronger competitor against Tencent and Sony.
Last month, Microsoft President Brad Smith presented arguments to EU antitrust regulators, asserting that the acquisition would promote competition. Smith led a delegation of senior executives, along with Activision CEO Robert Kotick, in a closed hearing with the European Commission.
© Thomson Reuters 2023
On a separate note, Xiaomi, after facing challenges in India last year, is preparing to compete in 2023. The company is committed to its wide product portfolio and its “Make in India” initiative. For more insights on this topic, listen to our discussion on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and other platforms.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
