Tag: microsoft/activision
The EU approves Microsoft/Activision takeover as long as xCloud does not benefit unfairly
European Commission approves Microsoft-Activision Blizzard deal
Former FTC Lawyer Blasts UK Agency For Blocking Microsoft-Activision Deal
Everyone has an opinion on the blockbuster merger of Microsoft and Activision Blizzard, but not everyone has served as a top lawyer for the Federal Trade Commission. In a recent article, former General Counsel of the FTC Alden Abbott opined that the UK’s Competition and Markets Authority should not have blocked the deal from proceeding, saying that the body did not fully consider the facts.
In the piece, Abbott argues that the CMA overstated the impact of cloud gaming in the short-term, pointing out that the promising technology has yet to make significant inroads with consumers yet. “Although cloud gaming does not require the purchase of specific gaming devices, it does require substantial bandwidth, stable internet connections, and subscriptions to particular services,” he writes.
He also agrees with a common argument advanced by advocates of the deal, which is that Microsoft is unlikely to remove Call Of Duty from PlayStation as a platform because it simply makes so much money, and the company faces competition from many other players in the space besides Sony. He concludes by stating that the decision may threaten similar “efficiencies-generating” acquisitions in the future. It’s worth noting that though the CMA’s initial decision has been made, the case is still ongoing, with Microsoft and Activision appealing the decision.
UK regulator blocks Microsoft-Activision deal
The Competition and Markets Authority fears acquisition would lead to “reduced innovation and less choice” in cloud gaming
UK relaxes anti-competition concerns on Microsoft-Activision deal
: Google, Nvidia raise concerns to FTC over Microsoft-Activision deal: report
Microsoft-Activision buyout case gets pretrial hearing Jan. 3
UK Challenges $69 Billion Microsoft/Activision Deal, Citing Potential Harm To Gamers
“Microsoft is one of three large companies, together with Sony and Nintendo, that have led the market for gaming consoles for the past 20 years with limited entries from new rivals,” the CMA said. “Activision Blizzard has some of the world’s best-selling and most recognizable gaming franchises, such as Call of Duty and World of Warcraft. The CMA is concerned that if Microsoft buys Activision Blizzard it could harm rivals, including recent and future entrants into gaming, by refusing them access to Activision Blizzard games or providing access on much worse terms.”
The CMA said these “concerns warrant an in-depth Phase 2 investigation,” so Microsoft and Activision Blizzard have been ordered “to submit proposals to address the CMA’s concerns” within five working days. “If suitable proposals are not submitted, the deal will be referred for a Phase 2 investigation,” which would “allow an independent panel of experts to probe in more depth the risks identified at Phase 1,” the CMA said. Besides Microsoft’s Xbox console, the CMA noted Microsoft’s Azure cloud computing platform and the Windows operating system. “The CMA is concerned that Microsoft could leverage Activision Blizzard’s games together with Microsoft’s strength across console, cloud, and PC operating systems to damage competition in the nascent market for cloud gaming services,” the announcement said. “A Phase 2 investigation (PDF) can result in a merger being prohibited or a requirement to sell some parts of the business,” notes Ars. “A Phase 2 investigation is typically limited to 24 weeks but can be extended by up to eight weeks.”
“After a final report, ‘the CMA has a statutory deadline of 12 weeks (extendable by up to six weeks for special reasons) to make an order or accept undertakings to give effect to its Phase 2 remedies.'”
Read more of this story at Slashdot.