Microsoft defends the purchase of Activision Blizzard before the European Commission

Microsoft is willing to defend tooth and nail its intention to buy the video game publisher Activision Blizzard.

Thomas Osborne
Thomas Osborne
21 February 2023 Tuesday 21:28
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Microsoft defends the purchase of Activision Blizzard before the European Commission

Microsoft is willing to defend tooth and nail its intention to buy the video game publisher Activision Blizzard. In a non-public hearing held yesterday in Brussels, the technology giant tried to convince European Union antitrust officials about the benefits that this operation, valued at 68.7 billion dollars – the largest in the history of entertainment – ​​could have. for the electronic entertainment industry and for consumers.

The idea that the president of Microsoft, Brad Smith, wanted to convey to the authorities in Brussels is that this operation could make the games from the publisher Activision Blizzard, including the extremely popular Call of Duty, end up reaching more users and platforms. To demonstrate this commitment, it announced two strategic agreements with the console manufacturer Nintendo and the graphics card company Nvidia, two contracts that will make it possible for Xbox games (and eventually those of Activision Blizzard) to be available for ten years on the platforms of both companies. In fact, Smith highlighted that, thanks to them, the potential market for these games would expand to 150 million users.

Microsoft's intention with these two agreements is to finish convincing the European Commission, which has objected to the operation, alleging that it could give the Redmond company an unfair competitive advantage in the video game sector. It is a position that is in line with that of the Federal Trade Commission (FTC) of the United States and the Competition and Markets Authority of the United Kingdom (CMA), which have also blocked the agreement arguing that it could harm competition. and to the users.

Beyond regulatory bodies, some private companies have raised concerns. Google expressed doubts about the power that this acquisition could give Microsoft in the video game sector. However, the company that has shown a stronger position is the Japanese Sony, manufacturer of the PlayStation console. Since the purchase was announced in January of last year, it has exerted frontal opposition, and at the center of its concerns is that Call of Duty, one of the best-selling franchises of the last two decades, ends up being exclusive to Xbox.

“The deal has never been about spending $69 billion to make Call of Duty available on fewer platforms, but about getting the games to more people,” Smith said.