Microsoft's Activision Blizzard Acquisition Getting In-Depth Probe
Microsoft made headlines at the start of 2022 when it announced its plan to purchase Activision Blizzard. While the deal could have a major impact on the video game industry, it remains to be seen whether it will be approved by regulators. Today, the European Commission confirmed that a second phase of its investigation into the deal will take place, and a decision is expected to be made by March 23, 2023. A big part of the investigation hinges on the Call of Duty franchise, and whether its potential exclusivity will have a negative impact on competition as a whole.
"In particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access to Activision Blizzard's console and PC video games, especially to high-profile and highly successful games (so-called 'AAA' games) such as 'Call of Duty'," the commission writes.
"The preliminary investigation suggests that Microsoft may have the ability, as well as a potential economic incentive, to engage in foreclosure strategies vis-a-vis Microsoft's rival distributors of console video games, such as preventing these companies from distributing Activision Blizzard's console video games on consoles or degrading the terms and conditions for their use of or access to these video games."
It's worth noting that Microsoft has made no indication that Call of Duty will become exclusive to Xbox consoles should the deal go through. The company has repeatedly indicated that it plans to release the series on PlayStation, and has even discussed bringing it to Nintendo Switch, as well. In a response to the UK's Competition and Markets Authority last month, Microsoft actually pointed to the absence of Call of Duty on Nintendo's platform as evidence that the series is not needed for success.
It remains to be seen whether regulators will allow the deal to go through, but insiders have told Wccftech that there is a lot of concern that it could fall apart. It certainly seems possible at this point, but no one will know for sure until next year!
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[H/T: Video Games Chronicle]