Belgium (Brussels Morning Newspaper) Global software giant Microsoft is reportedly gearing up to offer a number of concessions to the European Commission’s antitrust authority in order to push through its planned acquisition of video game giant Activision Blizzard.
Microsoft hopes to leverage its planned 69-billion-dollar acquisition to improve its position in the video game market compared to rivals Sony and Tencent, but the merger plans have received harsh criticism from Microsoft’s rivals and have attracted close scrutiny by antitrust authorities in the US, the UK and the EU.
Microsoft’s line of Xbox gaming consoles is currently in distant third place in the console gaming market, behind Sony’s PlayStation and Nintendo Switch, but Sony has expressed concerns – and filed complaints with regulators – over the acquisition’s potential impact on the market should Microsoft make Activision Blizzard’s games exclusive to the Xbox platform. Activision Blizzard holds a number of major intellectual properties, including Call of Duty, World of Warcraft, Diablo and Overwatch.
Sony’s argument is that the merger would not only harm its ability to compete, but also leave consumers with altogether less choice for gaming, while game developers would have less choice for publishing games. On the other hand, Microsoft is accusing Sony of making self-serving statements to maintain its dominant position in the gaming market. The company claims that Sony’s concerns that it could be foreclosed by the smallest of the three console competitors is not credible.
The European Commission is currently examining the merger, and is due to set out a formal list of competition concerns in January. Microsoft’s decision to offer concessions to the Commission before that time could likely be an attempt to preempt possible complaints, secure early clearance, and use the Commission’s ultimate decision before the antitrust bodies in the US and the UK as a legal argument.
According to Reuters, the chief remedy to the possible complaint would consist of granting a 10-year licensing deal to Sony, pledging to make all future Activision Blizzard games available on PlayStation consoles at the same time as Xbox and PC for at least another decade, removing the main possible objection of Microsoft aiming to increase its market share by publishing Xbox-exclusive titles.
Earlier this week, US media reported that the Federal Trade Commission seems likely to file an antitrust lawsuit against the merger, though the decision was not yet final, and was expected to be reached within a month. Microsoft’s pledge to offer a 10-year licensing deal to the European authorities could ostensibly prevent, delay or lessen the impact of potential Fed lawsuit.
