Microsofthas received a formal antitrust warning from the European Union over its planned acquisition of the gaming powerhouse Activision Blizzard, sources claim. With all the excitement and scaremongering that has surrounded Microsoft’s attempt at purchasing the publisher from the get-go, it’s not a huge surprise to see that it’s still being brought into question, with its future being fairly uncertain at this time.
Xbox CEO is confident about the acquisitionof Activision Blizzard, of course, but the fact remains that some of the world’s biggest governing bodies aren’t quite so sure about letting it go through. Being mostly anti-monopolistic, the EU appears to have now joined the FTC in formally warning Microsoft that its $69 billion offer might end up being forbidden in some of the most important territories of the world.
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Sources have informed Politico that the EU sent a formal statement of objections toMicrosoft, informing it that the Union representatives aren’t necessarily keen on the deal as it currently stands. According to the statement, the EU fears that Microsoft’s acquisition of Activision Blizzard may lead to “higher prices, lower quality, and less innovation for console game distributors,” which may end up negatively affecting the customers themselves. Microsoft’s own representatives have, in response, said that they are “confident we can address [the problems]” before they come to a head, mirroring what Phil Spencer had previously said in one of his official statements.
While Microsoft does claim that it is fully dedicated to resolving all the governing bodies' concerns over the deal, it’s worth remembering that theFTC sued Microsoft over the Activision Blizzard deal, too. This means that, as it currently stands, both the EU and the US-based FTC have potentially massive concerns about Microsoft’s market share, should the deal pass through. It’s still possible that Microsoft will succeed in the end, but it’s hardly what one would describe as a smooth ride.
Microsoft has acquired many gaming studiosover the past couple of years in an attempt to compete with Sony, with Bethesda being one of the most notable publishers on this list. The announcement that it would bid on Activision Blizzard sent Sony, in particular, into a frenzy, with the PlayStation CEO Jim Ryan issuing a number of statements highlighting the dangers this deal might pose for the industry.
Theacquisition of Activision Blizzard might empower Xboxin a rather unprecedented way, that much is clear. Getting control over hugely popular IPs such asCandy Crush,Call of Duty, andWorld of Warcraftcould set the stage for a new round of console wars. While Microsoft has already promised not to engage in anti-competitive behavior, it’s easy to see why some would think the whole situation is, in fact, a very slippery slope.
