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Euro trip-up: Microsoft’s acquisition of Activision Blizzard to be probed in Brussels

The proposed acquisition of Activision Blizzard by Microsoft has hit something of a roadblock in Europe.

Back in January Microsoft announced its intention to acquire the embattled developer in a deal worth approximately $75 billion. Since then Microsoft and Activision Blizzard have had to face questions from regulators around the world.

While these meetings have passed with little incident, the deal now faces in-depth probes in both the UK and Brussels according to the Financial Times. The probes come as fears grow that the deal is anti-competitive and would block rivals from having Call of Duty on their platforms.

The Competition and Markets Authority (CMA) in the UK is also concerned that Microsoft’s moves into cloud gaming could give it an edge it’s rivals can’t match.

“Following our Phase 1 investigation, we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming,” senior director of mergers at CMA, Sorcha O’Carroll said at the beginning of the month.

The CMA gave Microsoft five days to address its concerns and it seemingly hasn’t provided any remedies to the situation.

As for Brussels, Microsoft is still expected to file its case, but when it does, regulators and others involved in the matter expect a prolonged investigation in the European Union.

These roadblocks are notable as until now, Microsoft has seen little to no push back from regulators. Its competitors, however, have had harsh words about the deal.

Chief executive officer at Sony Interactive Entertainment Jim Ryan, recently called out Microsoft’s promise to keep Call of Duty on multiple platforms inadequate on many level.

“Microsoft has only offered for Call of Duty to remain on PlayStation for three years after the current agreement between Activision and Sony ends,” Ryan told Games Industry.

While this revelation wasn’t great, Ryan is likely starting a fight he might not like the result of. Sony is well known for its titles that are exclusive to PlayStation and crying foul about exclusivity to regulators may just inspire them to take a look at how Sony operates.

Microsoft could very well turn around to regulators and point to the success of titles such as God of War (2018) as an example of Sony’s hypocrisy when it comes to exclusivity.

We are curious to see how this matter plays out in Europe and whether UK and EU lawmakers put a stop to a deal that’s been in the works since January.

Earlier in September Activision Blizzard chief executive officer Bobby Kotick told employees he would provide regular updates about the merger via townhall meetings.

“With the number of government approvals required, we still believe the deal is most likely to close in Microsoft’s fiscal year ending June of next year. We are fortunate to have already received approvals from a couple of countries, and the process with all of the regulators is generally moving along as we expected,” said Kotick.

There is seemingly still a long road ahead for Microsoft, Activision Blizzard and regulators.

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