Xbox Reportedly Getting Antitrust Warning from EU Over Activision Deal
As the video game industry waits for a response to Microsoft's proposed purchase of Activision Blizzard, it seems another potential hurdle could stand in the way. According to a new report from Reuters, the European Commission is "readying a charge sheet known as a statement of objections setting out its concerns about the deal." While the antitrust warning has not been given to Microsoft just yet, it seems it will happen "in the coming weeks" according to Reuters sources. Microsoft is prepared to offer concessions about the deal to help it go through, but it remains to be seen whether they'll be enough.
Since the $69 billion dollar deal was announced last year, there has been global concern over what impact it could have on the video game industry as a whole. Activision Blizzard owns the Call of Duty franchise, which is at the heart of many concerns. Last month, Microsoft pledged to keep the franchise on PlayStation for at least 10 years, with a contract that would be legally enforceable by regulators. The company has also pledged to bring the series to Nintendo platforms for 10 years, despite the fact that the series has not been released on the company's systems for quite some time.
While many have argued that the deal would make the Xbox brand too powerful, Microsoft has continually pointed to the fact that its systems come in third behind PlayStation and Nintendo. While regulators are concerned about competition, Microsoft maintains that this would help it to better compete. PlayStation has been a dominant force in the industry since its entrance, and the Nintendo Switch continues to sell incredibly well after nearly six years on the market.
Some countries have already voiced their approval for the deal, but Xbox will have a much more difficult time convincing regulators in the U.S., U.K., and EU. It's impossible to say what might happen, but the EU will decide by April 11th, while the U.K. plans to make its decision by April 26th.
Do you think the deal will go through? Would the purchase give Xbox too much power in the industry? Let us know in the comments or share your thoughts directly on Twitter and on Hive at @Marcdachamp to talk all things gaming!