European Commission set to make new demands on Activision acquisition
I sometimes wonder if Phil Spencer and company ever regretted announcing their intention to buy Activision Blizzard King (ABK). After all, since the revelation that the companies were planning the transaction at a cost of US$ 69 billion, the plan seems to be far from being finalized.
In addition to having Sony as the main opponent of the transaction, MS saw the Federal Trade Commission (FTC) deny the transaction in the US, filing a lawsuit against the technology giant in the US courts. And now things seem to be complicating in the European Union too: if before the process went at a slow pace, now it seems that the Europeans are preparing to send a document communicating their concern about the emergence of a potential monopoly.
According to information disclosed by the Reuters agency, the European Commission would be in the process of send Xbox an antitrust documentwhich indicates that the agency seems really concerned about a potential threat to free competition in the games market.
Microsoft is likely to receive an EU antitrust warning about its $69 billion bid for ‘Call of Duty’ maker Activision Blizzard, people familiar with the matter said, raising the risk of a fresh challenge to the deal https://t.co/bPSqMI6VkS pic.twitter.com/ZwlMzxa9uw
— Reuters (@Reuters) January 17, 2023
According to Video Games Chronicle, behind-the-scenes conversations suggested that Microsoft would be willing to offer various concessions to regulators in the European Union to skip this stage of the process, but the idea does not seem to be going as planned. Apparently, the European Commission is not willing to accept concessions without first formally expressing its concerns about the potential acquisition of ABK.
In a note, Microsoft said it was “continuing to work with the European Commission to address any concerns about the market,” adding that their goal is “to bring more games to people and this transaction will further that goal.” The deadline for the European antitrust body’s response to Microsoft’s acquisition of Activision Blizzard King is set for April year.