ALBAWABA - The European Union gave its approval for Microsoft's acquisition of Activision Blizzard, the owner of the popular video game "Call of Duty," in a $69 billion deal.
This deal was finalized despite objections from several countries concerned about market monopolization, particularly the United States and the United Kingdom, which halted the deal earlier this month due to fears of hindering cloud gaming. Microsoft's commitments and assurances to mitigate antitrust concerns were deemed sufficient by European regulators. These commitments include a 10-year guarantee allowing European consumers to play Activision games on any cloud gaming service and a commitment to maintaining the quality and content of competing streaming platforms. With the completion of this deal, Microsoft will become the third-largest game publisher globally, after Tencent and Sony.
Antitrust Laws:
Antitrust regulations are the primary driving force behind the countries opposing this deal. The Federal Trade Commission's suspension of the merger between Microsoft and Activision and Google's legal troubles due to its digital advertising monopoly highlight the topic of antitrust practices in companies.
Rima Morad, legal advisor and partner at BSAAhmed Bin Hazim Law Firm, discussed the various types of monopolies and their impact on consumer rights in an economic podcast with CNN. The goal of antitrust laws is to regulate competition transparently and protect consumers. Competing companies like Sony, the owner of PlayStation, fear that Microsoft's acquisition of Activision may lead to restrictions on using "Call of Duty" on their PlayStation 4 if the deal goes through.
Microsoft stated that its commitment to game streaming will extend beyond the European Union. While the European Union's decision may strengthen Microsoft's chances of completing this massive deal, the company still faces battles in the United States and the United Kingdom.
Regulators in Saudi Arabia, Brazil, Chile, Serbia, Japan, and South Africa have already approved the deal, but it is still under review in China, South Korea, New Zealand, and Australia.
