While the UK is not satisfied with the terms of Microsoft’s deal with Activision, the old continent gave its “thumbs up”. As expected, The EU regulator approved the $68.7 billion acquisition this Monday (15) morning and explained its reasons for going forward with the decision. Now, Microsoft officially owns Activision in the Old Continent.
As per EU, Microsoft “would have no incentive to avoid distributing Activision Games to Sony”. And “Even if MS decides to remove games from PlayStation, it would not hurt the competition in the market of consoles”.
EU does not see reasons for concern
Unlike CMA, UK’s body, EU concerns are unrelated to the cloud gaming segment. As Margrethe Vestager, who took care of the case, Xbox’s strategy will bring games to more people. In fact, Microsoft’s agreements, for the first time, are bringing the streaming of some matches to cloud gaming services. This is positive for the competition and brings more growth opportunities in the long term.
This is certainly a big victory for MS and the Xbox division. To recall, the UK decision, fell like a bomb and the division. But it’s interesting to see that it was just the exception. Besides the EU, the deal was approved by several other countries across the globe. Now, it waits for the US FTC decision. Meanwhile, Microsoft and Activision will do their best to revert the decision to the UK. It was open to legal appeals, and MS hired a famous lawyer to take care of the court.
Microsoft now owns some of the world’s most popular video game IPs
With the takeover, Microsoft now owns franchises such as Crash Bandicoot, Call of Duty, Diablo, and World of Warcraft. The company recently announced a 10-year commitment with Nintendo and GeForce Now. The goal is to keep offering some of these games on these respective platforms. Meanwhile, Sony is not happy with those terms. The PlayStation maker states that a future without “Call of Duty” on the platform would severely hurt the company’s business.
We now believe that it’s just a matter of time until the situation changes in the UK. The deal seems to be unstoppable at this point.