Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Microsoft-Activision Blizzard £55bn merger approved by EU - despite UK rejection

Microsoft-Activision Blizzard £55bn merger approved by EU - despite UK rejection

The European Commission said it accepted commitments made by the technology giant that it would not decrease competition in cloud gaming, where it already accounts for around 70% of the market.
The European Commission said it accepted commitments made by the technology giant that it would not decrease competition in cloud gaming, where it already accounts for around 70% of the market.

The $68.7bn (£55bn) mega merger between Microsoft and game developer Activison Blizzard has been approved by the European Union, just weeks after it was blocked by the UK.

European regulators said they accept commitments made by Microsoft that its offer to take over the developer behind Call Of Duty, would not lessen competition.

In April, the UK's regulator said it was concerned about stifling competition in the gaming sector, with Microsoft saying it would appeal the decision.

"Video games attract billions of users all over the world. In such a fast-growing and dynamic industry, it is crucial to protect competition and innovation," said EU competition commissioner Margrethe Vestager.

"Our decision represents an important step in this direction, by bringing Activision's popular games to many more devices and consumers than before thanks to cloud game streaming.

"The commitments offered by Microsoft will enable for the first time the streaming of such games in any cloud game streaming services, enhancing competition and opportunities for growth."

The company, one of the biggest tech firms in the world makes the Xbox, and accounts for up to 70% of cloud gaming services, where people play the game online without the need to download the game.

In response, Activision Blizzard CEO Bobby Kotick, said: "The EC conducted an extremely thorough, deliberate process to gain a comprehensive understanding of gaming.

"As a result, they approved our merger with Microsoft, although they required stringent remedies to ensure robust competition in our rapidly growing industry."

"We intend to meaningfully expand our investment and workforce throughout the EU, and we're excited for the benefits our transaction brings to players in Europe and around the world."

Microsoft president Brad Smith said: "The European Commission has required Microsoft to license popular Activision Blizzard games automatically to competing cloud gaming services.

"This will apply globally and will empower millions of consumers worldwide to play these games on any device they choose."

The UK regulator stands by its decision

Sarah Cardell, chief executive of the UK Competition and Markets Authority, said: "The UK, US and European competition authorities are unanimous that this merger would harm competition in cloud gaming. The CMA concluded that cloud gaming needs to continue as a free, competitive market to drive innovation and choice in this rapidly evolving sector.

"Microsoft's proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years.

"They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale. This is one of the reasons the CMA's independent panel group rejected Microsoft's proposals and prevented this deal.

"While we recognise and respect that the European Commission is entitled to take a different view, the CMA stands by its decision."

Even though the firm has been granted EU approval, its rejection by the CMA means they will need to seek approval in the UK to operate there.
Newsletter

Related Articles

Budapest Post
Close
0:00
0:00
Olaf Scholz Assures: No Cuts to German Welfare State Amid Budget Crisis
Greece and Turkey Agree to Reboot Relations After Landmark Talks in Athens
Greece and Turkey Agree to Reboot Relations After Landmark Talks in Athens
No. 10 Advised: Rwanda Plan Has '50% at Best' Chance of Success Before Election
Significant Shift: UK Voters Express Desire for Closer Relationship with EU Since Brexit
Sadiq Khan Appeals to Progressives for Support Amidst Concerns Over New Voting System
Sunak Faces Further Scrutiny in Covid Inquiry as Pranksters Claim Access to His Former Phone Number
NHS Issues Apology for Sending Incorrect Body for Family Cremation
Labour Intensifies Condemnation of Gaza Violence
Senior doctors' significant pay increase creates tension within NHS
Two distinct investigations into the Covid pandemic are underway in the UK, each adopting a contrasting approach
Stephen Fry Returns to Work Just Three Months After Stage Fall
Laura Kuenssberg Reports: Tory Party Divisions and Disputes Heighten Pressure on Sunak
UK's Generation X Skeptical About Retirement Prospects
EU Fiscal Agreement Sparks Disagreement Between France and Germany Over Investment Expenditure
EU Fiscal Agreement Sparks Disagreement Between France and Germany Over Investment Expenditure
UK Parliamentary Committee Criticizes Lackluster Post-Brexit Financial Reforms
UK Parliamentary Committee Criticizes Lackluster Post-Brexit Financial Reforms
US, UK, Canada Impose Sanctions on Dozens on Human Rights Anniversary The US, UK, and Canada have collectively imposed sanctions on dozens of individuals and entities for human rights abuses to commemorate the 75th anniversary of the Universal Declaration of Human Rights
US, UK, Canada Impose Sanctions on Dozens on Human Rights Anniversary The US, UK, and Canada have collectively imposed sanctions on dozens of individuals and entities for human rights abuses to commemorate the 75th anniversary of the Universal Declaration of Human Rights
"New Beginnings: Greece and Turkey Agree to Repair Relations
"New Beginnings: Greece and Turkey Agree to Repair Relations
Finland's Supreme Court Prevents Extradition of Russian Terrorism Suspect to Ukraine
Finland's Supreme Court Prevents Extradition of Russian Terrorism Suspect to Ukraine
UK Proposes Streamlined Financial Advice to Reduce Costs for Consumers
UK's Labour Party Conducts Review of Financial Services to Boost City's Growth Potential
London City Hall Condemns Blast Targeting Clean Air Zone Camera
Controversy Surrounds President Macron's Hanukkah Candle Lighting Ceremony at Elysée Palace
Venezuela Steps Up Claim on Guyana's Essequibo Region
Spain's First AI Model Earns Up to $10,000 Monthly
German Cabinet Works to Address 'No-Debt' Crisis After Court Outlaws Budget
Former President Restricted from Leaving Ukraine Amid Alleged Plan to Meet Hungary's Viktor Orban
Spain soccer kiss: Furore grows as prosecutors launch probe against federation chief
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Greek PM offers tourists affected by wildfires a free stay in Rhodes next year.
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
How “peacekeepers” at the UN spend our American tax dollars.
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
×