The European Commission opened a thorough investigation of the Activision-Blizzard purchase proposal formulated by Microsoft.
As can be read on the website of the body of executive power of the European Union, the Commission is concerned about the possibility that “the proposed acquisition may reduce competition in the console and PC game distribution markets, including subscription services and / or cloud game streaming services, and in PC operating systems.”
Phase 1 of the investigation has been closed and the Commission will now investigate these worrying points further, including the possibility that “Microsoft may block access to Activision-Blizzard video games for PC and consoles, especially high-profile hit games (so-called “AAA” games) such as “Call of Duty”“.
The Commission believes that Microsoft may have “the capacity and potential economic incentive“to prevent its competitors from having access to the company’s games.
As for subscription and streaming services, they believe the purchase could reduce competition in an emerging market, “leading to higher prices, lower quality and less innovation at console distributors that could be passed on to consumers.”
He concludes by commenting that, in the realm of operating systems, the purchase could reduce the ability of other PC operating systems to compete with Windows by adding Activision Blizzard games to its portfolio.
The Commission has 90 working days to issue a decision, i.e. it will have to communicate the result by 23 March 2023.
The European Union thus follows the path of the UK CMA, which has already launched its own in-depth investigation into the purchase transaction, valued at almost 70,000 million dollars.
Bobby Kotick, CEO of Activision-Blizzard, sent an open letter to all employees of the company in response to the European Commission survey.
In the statement, he assures that joining Microsoft will enable the company to realize its greatest ambitions and satisfy the gaming audience.
He reiterated that the purchase is a long process and that they are collaborating with the authorities. The process is expected to be ready before the end of Microsoft’s fiscal year (June 30, 2023).
He also points out that the Brazilian competition authority has approved the purchase and believes that there is no danger to competition.
Kotick is still CEO of Activision-Blizzard despite being one of the top reported when cases of sexual harassment and discrimination within the company emerged in 2021. Some information suggests that he was fully aware of internal problems and even helped cover them.
