Arab Press

بالشعب و للشعب
Tuesday, Nov 12, 2024

Microsoft-Activision Blizzard £55bn merger approved by EU - despite UK rejection

Microsoft-Activision Blizzard £55bn merger approved by EU - despite UK rejection

The European Commission said it accepted commitments made by the technology giant that it would not decrease competition in cloud gaming, where it already accounts for around 70% of the market.
The European Commission said it accepted commitments made by the technology giant that it would not decrease competition in cloud gaming, where it already accounts for around 70% of the market.

The $68.7bn (£55bn) mega merger between Microsoft and game developer Activison Blizzard has been approved by the European Union, just weeks after it was blocked by the UK.

European regulators said they accept commitments made by Microsoft that its offer to take over the developer behind Call Of Duty, would not lessen competition.

In April, the UK's regulator said it was concerned about stifling competition in the gaming sector, with Microsoft saying it would appeal the decision.

"Video games attract billions of users all over the world. In such a fast-growing and dynamic industry, it is crucial to protect competition and innovation," said EU competition commissioner Margrethe Vestager.

"Our decision represents an important step in this direction, by bringing Activision's popular games to many more devices and consumers than before thanks to cloud game streaming.

"The commitments offered by Microsoft will enable for the first time the streaming of such games in any cloud game streaming services, enhancing competition and opportunities for growth."

The company, one of the biggest tech firms in the world makes the Xbox, and accounts for up to 70% of cloud gaming services, where people play the game online without the need to download the game.

In response, Activision Blizzard CEO Bobby Kotick, said: "The EC conducted an extremely thorough, deliberate process to gain a comprehensive understanding of gaming.

"As a result, they approved our merger with Microsoft, although they required stringent remedies to ensure robust competition in our rapidly growing industry."

"We intend to meaningfully expand our investment and workforce throughout the EU, and we're excited for the benefits our transaction brings to players in Europe and around the world."

Microsoft president Brad Smith said: "The European Commission has required Microsoft to license popular Activision Blizzard games automatically to competing cloud gaming services.

"This will apply globally and will empower millions of consumers worldwide to play these games on any device they choose."

The UK regulator stands by its decision

Sarah Cardell, chief executive of the UK Competition and Markets Authority, said: "The UK, US and European competition authorities are unanimous that this merger would harm competition in cloud gaming. The CMA concluded that cloud gaming needs to continue as a free, competitive market to drive innovation and choice in this rapidly evolving sector.

"Microsoft's proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years.

"They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale. This is one of the reasons the CMA's independent panel group rejected Microsoft's proposals and prevented this deal.

"While we recognise and respect that the European Commission is entitled to take a different view, the CMA stands by its decision."

Even though the firm has been granted EU approval, its rejection by the CMA means they will need to seek approval in the UK to operate there.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Israeli Strike Severely Disrupts Iran's Missile Production, Reports Saudi News
Blinken Sees Opportunity in Hamas Leader's Death
Israel Eliminates Successor of Hezbollah Leader Hassan Nasrallah
Global Unrest: Kenyan Political Tensions, India's Air Quality Crisis, Uganda's Opposition Trials, and Gaza's Humanitarian Plea Amid Israeli Offensive
Israeli Airstrike Targets Hezbollah's Financial Resources
Global Tensions and Cultural Engagement: North Korea's Alleged Troop Support for Russia, King Charles' Visit to Australia, and More
Iran Warns Biden on Israel Support Amid Rising Regional Tensions as Arab American Voters Poised to Sway 2024 Election
Regional Turmoil: Railway Safety Protests in Egypt, Humanitarian Crisis in Gaza, and Rising Tensions with Hezbollah and Iran
Global Tensions and Humanitarian Missions: WHO's Evacuation Efforts in Gaza Amid Rising Conflict Concerns
Global Tensions and Challenges: US Defense Moves, Rising Polio Cases, and Calls for Climate Leadership
UN Experts Warn of Complicity in War Crimes Supporting Israeli Occupation; Global Leaders Grapple with Geopolitical Crises
Global Crisis Update: Belgian War Crimes Investigation, Singapore Terror Plot Foiled, and Rising Middle East Tensions
Geopolitical Tensions Escalate: Lebanon-Iran Dispute, Macron's UN Defense, and North Korea’s Role in Ukraine
Biden Reinforces Transatlantic Ties in Germany as Middle East Tensions Escalate with Key Hamas Leader's Death and UN Peacekeepers Under Threat
Global Shifts: Fuel Crisis Drives Change in Nigeria, Diplomatic Overtures in South Asia, and Rising Tensions in Korea
Global Tensions Surge: German Warship Intercepts Drone, Jakarta Braces for Prabowo's Inauguration, and Israel Eliminates Hamas Leader
Xi Jinping Urges Troops to Prepare for Conflict Amid Taiwan Drills
Netanyahu Condemns Alleged Hezbollah Assassination Attempt
Israeli Leaflet Campaign in Gaza: A Critical Update
Espionage Tensions, Global Crises, and Calls for Humanitarian Action Define Geopolitical Landscape
Global Tensions Rise: New Sanctions on North Korea, Sudanese Refugee Crisis, and Shifts in U.S. and European Policies
Global Tensions and Political Shifts: Key Developments in Indonesia, U.S., Malaysia, China, Turkiye, and the Middle East
Southern Africa's Historical Drought Crisis Amid Global Tensions and Strategic Alliances
Biden Praises Israel's Military Action Against Hamas Chief Yahya Sinwar
Yahya Sinwar’s Death Marks Pivotal Moment in Gaza War
Global Conflicts Escalate: World Bank Warns of $20 Billion Damages in Gaza, U.S. and International Tensions Rise
Hezbollah Deputy Chief Calls for Ceasefire Amidst Escalating Conflict with Israel
US Warns Israel of Potential Aid Cuts Over Gaza Assistance Delays
Meta Faces Legal Battle Over Teen Social Media Addiction
U.S. Criticizes Israel's Tactics in Beirut Amidst Humanitarian Concerns; Italy Opens Controversial Migrant Hub
Amid Israel-Hezbollah Tensions, France Evacuates Citizens; Global Leaders Urge De-escalation and Aid Efforts
Macron Urges Netanyahu to Honor UN Resolutions Amid Rising Tensions; Global Protests and Diplomatic Summits Highlight Complex Geopolitical Climate
Escalating Tensions: Israel's Planned Retaliation Against Iran Amid Global Geopolitical Shifts
Rising Tensions in Lebanon and Israel: Sectarian Strains and Military Moves Amid Humanitarian Efforts
Global Tensions and Political Shifts: UN Concerns in Tunisia, Italian Troop Security, Afghan Resettlement, and Strategic Alliances Forming
President of Venezuela Nicolás Maduro: "Long live Venezuela, long live Palestine, long live Lebanon. May their fights for freedom and dignity live on!
Regional Tensions Escalate: Iran and Israel Clash, U.S.-Philippines Drills Stir Southeast Asia, and Singapore Faces Legacy Dispute
Russia's Call for a BRICS Financial System Alternative
Israel Vows to Limit Retaliatory Strike on Iran to Military Facilities
Rising Geopolitical Tensions: UN Highlights Lebanese Child Displacement as U.S. Faces Shifts in Middle Eastern Alliances
Hezbollah's Drone Strikes Intensify Israeli-Lebanon Tensions, Prompting Global Security Concerns
International Tensions Escalate: Sweden's Qur'an Burning Trial, China's Diplomatic Moves in the Middle East, and Global Protests
Middle East Tensions, Nile River Pact Disputes, and Global Health Initiatives Highlight Complex International Challenges
Tensions Soar Globally: London Murder Trial, Middle East Conflicts, and UK's Landmark Anti-Zionism Ruling
Netanyahu Urges UN to Relocate Lebanon Peacekeepers Amid Escalating Tensions
EU Sanctions Iran for Arming Russia Amid Ukraine War; Global Tensions Escalate
Ukraine Strikes Deep in Russia; EU Denounces Israeli Attacks on UN Peacekeepers; Archaeologists Uncover Secrets of Petra's Hidden Tomb
Escalating Middle East Tensions and Global Shifts: Key Developments from Gaza to Southeast Asia and Europe
Global Tensions Surge: Iran's Missile Strikes, U.S. Security Concerns, and Regional Conflicts Intensify
Global Tensions Rise: Calls for Justice in Lebanese Journalism, Palestinian Prisoner Deaths, and International Diplomatic Strains
×