Sources: EU regulators are likely to approve Microsoft's $69B Activision Blizzard acquisition, satisfied by the company's Nintendo and Nvidia licensing deals
ReutersFoo Yun Chee
Context & Ripple Effects
The European Commission’s review had escalated to an in-depth investigation and was expected to produce a statement of objections, putting the transaction’s game-distribution terms at the center of the EU process. Microsoft’s licensing agreements with Nintendo and Nvidia are now reported to have addressed those concerns.
Microsoft and Activision Blizzard move closer to EU clearance, with Nintendo and Nvidia’s licensing arrangements serving as the commitments supporting that outcome.
Nintendo and Nvidia gain contractual access to Activision games under the deals cited by regulators, rather than relying solely on Microsoft’s post-acquisition distribution choices.
Second-order effects
Microsoft’s rivals in game distribution face a clearer remedy standard: access commitments, not just arguments about the merger’s benefits, are becoming necessary to answer EU concerns.
Licensing becomes a more central competitive lever for Microsoft because maintaining the commitments is tied to securing regulatory acceptance of the acquisition.
Third-order effects
The case points toward merger remedies in which regulators preserve access to major game franchises through enforceable licensing rather than blocking consolidation outright.
If this approach is repeated, large game acquisitions will be assessed increasingly on the durability and breadth of cross-platform access commitments.
The trend: Gaming-industry consolidation is being paired with licensing remedies that aim to keep important titles available beyond the buyer’s own ecosystem.
Seems like Microsoft has made more than reasonable concessions & accommodations for the EU/CMA to push the Activision Blizzard King deal through... GOOD. Now Sony just sign the damn papers so we can move on and focus on bring more games to more players! 💙💚 https://twitter.com/...
These deals could be seen as access remedies, which are a kind of behavioral remedy. Essentially Microsoft is showing in good faith that it is willing to negotiate deals with competitors in order to address access concerns (and to favorably expand the Xbox business to boot).
...Kind of defeats the purpose of Anti-Trust litigation while only applicable to the EU -I'd definitely keep an eye on this given SCOTUS & Oracle & Goggle Exclusive:" Microsoft set to win EU nod on Activision with licensing offer, sources say" https://www.reuters.com/...
Reuters is reporting that their sources have told them the Call of Duty licensing deals Microsoft has offered will more than likely satisfy EU regulators' concerns, and EU won't ask Microsoft to sell off any part of Activision Blizzard https://www.reuters.com/... https://twitter.…
Microsoft is giving the rest of big tech a master class in working with regulators. A $70B acquisition of Activision but it's actually clearly growing the pie for consumers and competition (e.g. Call of Duty on Nintendo platforms). Props to @BradSmi https://www.reuters.com/...
EU will not expect divestiture of Call of Duty. Here's the original report. If the CMA then also accepts Microsoft's proposal that they pay for a 3rd-party monitor to ensure compliance, this deal will go through. The FTC can then just choose between losing in court or settling. h…
Now that the EU Commission is reportedly fine with Microsoft acquiring Call of Duty (subject to whatever remedies will be worked out), this is no longer a question of those “console wars”. If this was bad for PlayStation gamers, the EC would not take that (reported) position. htt…
Microsoft's Activision deal likely to be approved by EU regulators, says Reuters. Licensing deals with Nintendo and Nvidia have reportedly eased competition concerns. Full details here: https://www.theverge.com/...