Microsoft has received good news regarding the purchase of Activision Blizzard by having the purchase approved by the European Commission. The purchase was recently rejected in the UK where competitive risks to the cloud gaming market were singled out as the major issue.
The European Commission, like the UK, has been critical of the risks of monopoly in the cloud game market and that Activision Blizzard would stop releasing its games on competing platforms. After months of talks, the European Commission sees no major risks around these points and that even if Microsoft were to withdraw from the Playstation platform, Sony’s game platform is big enough to survive. This and the fact that Microsoft would also suffer financially if, for example, the best-selling game series Call of Duty were to disappear from other platforms.
The EU shows with educational arrows how Microsoft’s solution to cloud gaming benefits everyone.
In order to resolve the issue surrounding the cloud monopoly, a slightly more complicated solution is required. In addition to offering competing cloud platforms a 10-year agreement in which Microsoft promises to make Activision Blizzard games available, customers in EU countries will be given access to free licenses that will allow them to play the games on any cloud platform. The EU believes that sharing licenses to other cloud gaming platforms would benefit both consumers and competing businesses, large and small.
With the European Commission’s approval of the purchase, the possibility is opened that Microsoft will win the appeal against the UK’s negative decision. However, when that happens is currently unknown. In addition to this, the purchase also needs to be approved by the Federal Trade Commission, FTC, in the United States, which has so far also been critical of the purchase. In late 2022, the FTC blocked the purchase and the matter is set to go to court in August in what could be a lengthy legal process that could last this year.
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Source: SweClockers by www.sweclockers.com.
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