Microsoft’s potential solution to the EU’s antitrust concerns regarding its $69 billion acquisition of Activision could involve offering licensing deals to its rivals, according to knowledgeable sources. This move would help Microsoft overcome a significant obstacle in finalizing the deal.
In January of last year, Microsoft made its largest-ever bid to compete with leaders Tencent and Sony in the thriving video gaming market. The tech giant also aimed to enter the metaverse, a virtual online world where individuals can engage in work, play, and social activities.
The European Commission, responsible for approving the deal by April 25, is not expected to require Microsoft to divest any assets. This news caused a 1.8% increase in Activision shares during pre-market trading.
Brad Smith, President of Microsoft, stated last month that the company was willing to offer licensing deals to address antitrust concerns. However, Microsoft remains adamant about not selling Activision’s successful Call of Duty franchise. Smith explained that it’s impractical and unfeasible to separate a single game or segment from Activision’s expansive portfolio.
The European Union’s competition enforcer declined to comment on the matter, while Microsoft reiterated its commitment to providing effective and easily enforceable solutions that address the European Commission’s concerns. A Microsoft spokesperson highlighted the company’s dedication to maintaining 100% equal access to Call of Duty for Sony, Steam, NVIDIA, and others. This commitment aims to preserve the benefits of the deal for gamers and developers, as well as enhance competition within the market.
Last month, Microsoft signed 10-year licensing agreements with Nintendo and Nvidia, contingent upon receiving approval for the Activision acquisition. These agreements will bring Call of Duty to their gaming platforms.
However, the deal faces regulatory challenges in the United Kingdom, where the UK competition agency has recommended that Microsoft divest Call of Duty to address its concerns. Additionally, the US Federal Trade Commission (FTC) has requested a judge’s intervention to block the deal.
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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.
