Microsoft may offer concessions to EU to complete Activision Blizzard deal

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Microsoft, in order to avoid objections by European Union antitrust regulators on the $69 billion acquisition offer to Activision, has offered some solutions, as per recent reports.

Following the acquisition of several renowned companies, Bethesda being the most notable, Microsoft has been seeking to close the purchase of Activision Blizzard for almost a year.

This acquisition will greatly expand the offerings of Xbox Game Studios to players but the company seems to be facing some problems from regulation and antitrust authorities of the European Union.

The European Union has started an investigation regarding competition concerns and the monopoly that Microsoft may get if the deal is approved. The deadline for them to submit a formal document highlighting the statements of objection is in January 2023. The regulatory procedure could be sped up by providing remedies before such a document is published.

“Ultimately, such a move could secure an early clearance with the European Commission and subsequently be used by the parties before other antitrust agencies,” said Stephane Dionnet, Partner at law firm McDermott Will & Emery.

“However, it remains to be seen whether the active complainants will validate such concessions and if behavioral remedies will also be accepted by the CMA and the FTC,” he added.

Microsoft could potentially propose a 10-year licensing deal to prove that they do not have any intention to make the video games by “Activision Blizzard” exclusive to PC and Xbox.

A spokesperson from Microsoft said, “Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.”

Sony and the European Union competition watchdog, which will give its final decision on the deal, are yet to comment in the matter.

If the deal gets approved, Microsoft will be the biggest video game company in North America and third largest game company in the world. The deal will also be the biggest acquisition of all time.