European Union approves Microsoft-Activision merger, threatened by British veto

2023-05-15 17:40:47

The European Commission approved, Monday, May 15, the acquisition of the American video game publisher Activision Blizzard by Microsoft for 69 billion dollars (63.5 million euros), three weeks after a British veto which jeopardized the operation.

This agreement is conditional on Microsoft’s compliance with measures proposed to guarantee competition in the market for dematerialized games accessible by streaming. These commitments “fully address the competition concerns raised by the Commission”said the EU executive in a communiqué.

In a video game sector in full consolidation, Microsoft, which markets the Xbox console, announced in January 2022 the acquisition of Activision Blizzard, publisher of successes such as Call of Duty, World of Warcraft et Candy Crush, for 69 billion dollars, a record amount in this sector. The merger, if completed, would create the industry’s third-largest player in terms of revenue, behind China’s Tencent and Japan’s PlayStation maker Sony.

Read the decryption: Article reserved for our subscribers Microsoft, with the record takeover of Activision, reshuffles the cards in video games

Positions divergentes

The European Commission, guardian of competition in the Union, had opened an in-depth investigation into this operation in November, but the procedure will have made it possible to allay its fears. The future of the takeover remains uncertain, however, because, for the first time since Brexit in a file of such magnitude, Brussels and London have adopted divergent positions. The British competition authority, the Competition and Markets Authority (CMA), announced on April 26 its decision to block the mega-merger, deeming the risks too high for competition.

Read also: Article reserved for our subscribers Video games: the United Kingdom gets in the way of the merger of Microsoft and Activision

Microsoft had immediately announced that it would appeal. “This decision appears to reflect a misunderstanding of this market and how cloud technology actually works”, had estimated the group. Brussels’ clearance should provide him with strong arguments to challenge the CMA’s decision before the UK’s Competition Appeal Tribunal (CAT). “If Microsoft does not win the CAT appeal, it will not be able to proceed with the acquisition even if the European Commission approves itsays Anne Witt, specialist in competition law at Edhec. Unless, of course, Microsoft decides to exit the UK market, but that seems unlikely. »

Read the picture: From economic triumph to the disavowal of his employees, the winding journey of the boss of Activision

The World with AFP