Microsoft's acquisition of Activision Blizzard has been given the green light by the European Commission. The approval follows concerns raised over the impact the deal would have on the market for video games and cloud services, particularly the Call of Duty franchise. Despite these concerns, the commission found that the acquisition would not significantly impede competition in the European Economic Area.
The $69 billion deal, which was announced in January, is the largest acquisition in the history of video games. It will give Microsoft control of some of the biggest franchises in gaming, including Call of Duty, World of Warcraft, and Candy Crush. The acquisition is expected to be completed by the end of 2023.
The approval from the European Commission is a major step forward for Microsoft, which has faced significant regulatory hurdles in its attempt to acquire Activision Blizzard. In December, the UK's Competition and Markets Authority (CMA) placed restrictions on the deal, citing concerns over the impact it would have on competition in the UK video games market.
Despite these concerns, Microsoft has remained committed to the acquisition, arguing that it will help the company to expand its gaming business and compete more effectively with rivals like Sony and Nintendo. The company has also emphasized its commitment to respecting the intellectual property and creative autonomy of Activision Blizzard's studios.
The acquisition of Activision Blizzard is just one part of Microsoft's broader strategy to expand its presence in the gaming industry. In recent years, the company has invested heavily in its Xbox division, including the launch of the Xbox Series X and Series S consoles in late 2020. The company has also been expanding its presence in the cloud gaming market, with the launch of its Xbox Game Pass service and the acquisition of cloud gaming company PlayFab.
The approval from the European Commission is likely to have significant implications for the future of the video games industry. Microsoft's control of some of the biggest franchises in gaming could give the company a significant advantage over its rivals, particularly in the areas of cloud gaming and online services. However, some analysts have raised concerns over the impact that the acquisition could have on the creative autonomy of Activision Blizzard's studios, and the potential for the company to prioritize profitability over artistic vision.
Despite these concerns, it is clear that Microsoft sees the acquisition of Activision Blizzard as a key part of its strategy to dominate the video games market. The company has already made significant investments in its gaming business, and the acquisition of Activision Blizzard is likely to be just the beginning of a new era of growth and expansion for Microsoft.
