Microsoft may get EU approval for its Activision Blizzard purchase

Microsoft seems to have addressed the European Union’s antitrust concerns over its purchase of video game company Activision Blizzard. Sources have told Reuters that the EU will soon approve the $69 billion acquisition. The Windows giant’s licensing offers to rivals reportedly helped it win over the European watchdog. The Union previously raised concerns that the deal could stifle competition in the market.

Microsoft reached an agreement to purchase Activision Blizzard in January last year. The acquisition, its biggest ever, would equip the Windows maker with tools and resources to take on videogaming giants Tencent, Sony, and others. Unsurprisingly, the deal faced regulatory hurdles as the company could leverage Activision Blizzard to gain an unfair advantage in the booming video gaming market.

In November, the European Commission launched a full-scale investigation into the deal. The regulators said that the purchase may “significantly reduce competition”. Microsoft could block competitors from accessing Activision Blizzard’s “high-profile and highly successful games,” including Call of Duty. Dedicated gaming devices like the Steam Deck may lose business because of this, while Windows could greatly benefit from it.

Amongst the possible solutions to alleviate these concerns was the sale of asses like Call of Duty. EU is scheduled to announce its findings and decision on the matter on April 25. However, three people familiar with the matter told Reuters that it may no longer demand an asset sale. Last month, Microsoft pledged to keep these popular games on competing platforms for at least ten years. That seemingly proved enough to win the EU’s trust.

“Our commitment to grant long-term 100 percent equal access to  Call of Duty to Sony, Steam,  NVIDIA, and others  preserves the deal’s benefits to gamers and developers and increases competition in the market,” Reuters cites a Microsoft spokesperson as saying. The EU may not release an official statement on the matter until the original schedule of April 25.

Microsoft’s Activision Blizzard purchase is also facing regulatory hurdles in other markets

Microsoft may have won over the European Commission, but its Activision Blizzard acquisition is still under scrutiny in other regions. The UK competition agency is demanding it to divest Call of Duty, while the US Federal Trade Commission (FTC) has mulled blocking the deal altogether citing antitrust concerns. Microsoft has until July of this year to address all of these concerns. If it fails to get a green light for the purchase by July, it will have to renegotiate or forfeit the agreement, which would incur a hefty breakup fee. We will keep you posted.