EU opens “in-depth investigation” into Microsoft’s Activision Blizzard acquisition

Microsoft now faces a larger probe over its plans to accumulate Activision Blizzard, with the European Commission set to take 90 working days as much as March twenty third to take a call. The Commission says it’s opening up an in-depth investigation as a result of it’s “concerned that the proposed acquisition may reduce competition in the markets for the distribution of console” and PC video games.

The Commission additionally says it’s involved that Microsoft “may foreclose access to Activision Blizzard’s console and PC video games,” together with high-profile ones like Call of Duty. Regulators within the EU are additionally involved in regards to the potential for Microsoft to dam distribution of Activision Blizzard video games on rival subscriptions or cloud sport streaming companies.

These issues mirror related complaints from UK regulators, however the European Commission additionally says it’s involved about competitors for PC working programs with this deal. “The Commission is concerned that Microsoft may reduce the ability of rival providers of PC operating systems to compete with Microsoft’s operating system Windows, by combining Activision Blizzard’s games and Microsoft’s distribution of games via cloud game streaming to Windows,” reads a press release from the European Commission. “This would discourage users to buy non-Windows PCs.”

It was broadly anticipated that the European Commission would look extra carefully at Microsoft’s Activision deal, particularly after the UK’s Competition and Markets Authority (CMA) signaled a more in-depth take a look at the deal in September. That led to Microsoft pleading for its Activision deal earlier than describing the CMA’s issues as “misplaced” and accusing the regulator of adopting “Sony’s complaints without considering the potential harm to consumers.”

Whether we get fairly the explosive response from Microsoft on the European Commission’s issues stays to be seen, however the firm has all the time maintained this can be a radical course of with regulators and that it’s anticipating to shut the deal by the tip of its fiscal 2023 12 months, which ends in June 2023.