Microsoft may have to offer concessions to address European Union (EU) antitrust concerns over its $69 billion bid for Call of Duty maker Activision Blizzard after regulators opened an investigation on Tuesday and alert about the impact of the business.
The US software company, which announced the deal in January, is betting that Activision’s gaming stability will help it better compete with leaders Tencent and Sony, with the latest critic of the deal.
“The commission’s preliminary investigation shows that the transaction could significantly reduce competition in the console and PC video game distribution markets, including multi-game subscription services and/or cloud game streaming services, and for PC operating systems. ,” the European Commission said in a statement.
“The investigation suggests that Microsoft may have the ability, as well as the potential economic incentive, to engage in foreclosure strategies vis-a-vis Microsoft’s rival console video game distributors,” he added.
The company said it will work with the antitrust agency to address valid concerns.
“Sony, as an industry leader, says we are concerned about Call of Duty, but we said we are committed to making the same game available on the same day on Xbox and PlayStation. We want people to have more access to games, not less,” said a Microsoft spokesperson.
The European competition body said it would decide by March 23, 2023 whether to authorize the deal. The UK is also investigating the takeover, with similar concerns to the European Union.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
