EU hinders Microsoft’s deal with Activision
2023.01.16 12:17
By Ray Johnson
Budrigannews.com – (NASDAQ:) Microsoft is likely to receive an antitrust warning from the EU regarding its $69 billion bid for Activision Blizzard (NASDAQ:), which makes “Call of Duty.” According to people with knowledge of the situation, that could make it harder to close the deal.
According to the individuals, the European Commission is preparing a charge sheet known as a statement of objections outlining its concerns regarding the deal. This statement will be sent to Microsoft in the coming weeks.
The EU antitrust watchdog, whose decision on the deal is due on April 11, declined to comment.
Microsoft stated, We are continuing to collaborate with the European Commission to address any concerns regarding the marketplace. This deal will help us reach our goal of making more games available to more people.
In order to improve its ability to compete with market leaders Tencent and Sony (NYSE:), the U.S. software giant and Xbox maker made the acquisition announcement in January of last year.
However, regulators in the United States and the United Kingdom have expressed concerns, and the Federal Trade Commission in the United States has filed a lawsuit to stop the deal.
Other people who were familiar with the situation told Reuters in November that Microsoft was expected to offer remedies to EU regulators in an effort to avoid a statement of charge and shorten the regulatory process.
Even though informal discussions about concessions are ongoing, the people said, the EU competition enforcer isn’t likely to be open to remedies until it sends out its charge sheet.
Microsoft said it was open to a similar agreement with Sony, which is critical of the acquisition, when it reached a 10-year agreement with Nintendo to make “Call of Duty” available on Nintendo consoles last month.
In Brazil, Saudi Arabia, and Serbia, the agreement has been approved without any conditions.
