European Union Scrutinizes Microsoft's Acquisition of Activision Blizzard

Penelope Cook 10 May 2023
European Union Scrutinizes Microsoft's Acquisition of Activision Blizzard Image

The European Union (EU) is set to examine Microsoft's proposed acquisition of Activision Blizzard, a deal worth $68.7 billion. This move comes as the EU continues to keep a close eye on the tech giant's expansion, ensuring that it complies with the region's competition rules and regulations.

Microsoft's acquisition of Activision Blizzard, the gaming company behind popular titles such as Call of Duty and World of Warcraft, is considered one of the largest in the tech industry. The EU's investigation will focus on whether the deal would stifle competition in the gaming sector, potentially harming consumers in the process. The European Commission, the executive branch of the EU, will be responsible for assessing the transaction's impact on the market.

The acquisition is significant not only for the gaming industry but also for the broader tech sector. By purchasing Activision Blizzard, Microsoft aims to bolster its position in the gaming market, competing directly with rivals such as Sony and Nintendo. Moreover, this move will help the company strengthen its subscription-based gaming service, Xbox Game Pass, by adding Activision Blizzard's extensive portfolio of games to its offerings.

Microsoft's acquisition of Activision Blizzard has already raised some concerns among regulators in the United States. The Federal Trade Commission (FTC) is currently reviewing the deal, focusing on antitrust issues. The agency's investigation will determine whether the acquisition would result in unfair market domination, potentially leading to higher prices for consumers and reduced innovation in the gaming industry.

As the European Union scrutinizes Microsoft's acquisition of Activision Blizzard, it remains to be seen whether the deal will face regulatory hurdles in both the EU and the US. The outcome of these investigations will have significant implications for the gaming industry, potentially shaping the competitive landscape and determining the future of gaming giants such as Microsoft, Sony, and Nintendo.