The European Union could approve Microsoft’s planned buyout of Activision Blizzard as early as next week, at least according to insiders. Shockwaves were sent across the gaming industry when Microsoft announced its plans to add Activision Blizzard to its vast collection of Xbox-affiliated publishers last year, but not everyone has been on board. Console competitor Sony has expressed fear of losing access to the highly lucrative Call of Duty franchise, while others are concerned that Microsoft might gain an unfair monopoly on the industry should the deal close.
A wrench was thrown into Microsoft’s Activision Blizzard acquisition last month when the United Kingdom's Competition and Markets Authority elected to block it on the grounds that it could damage competition in the ever-growing cloud gaming market. This decision could set the deal back 10 years, though Microsoft has vowed to appeal the CMA’s ruling to Britain's Competition Appeal Tribunal. Meanwhile, the European Union has been carrying out its own investigation into the Activision Blizzard buyout for the past several months, and it could be nearing its final decision soon.
According to a new report from Reuters, the EU could deliver its final verdict on Microsoft’s Activision Blizzard purchase as soon as next week. Insiders close to the matter believe that May 15 is the likeliest date for the EU to approve the deal, eight days before the current provisional deadline of May 22. Reports suggest that the antitrust firm will indeed support the deal after Microsoft agreed to licensing deals with various cloud streaming companies to offset concerns of it gaining a monopoly in this field.
Despite the recent disapproval of the CMA, Microsoft’s planned acquisition has gained a steady stream of support from other gaming companies and regulatory bodies. Both Nintendo and Nvidia have made deals with Microsoft to bring Call of Duty to their respective platforms should the deal be cleared, and countries like China and Japan have granted their approval. Meanwhile, the United States Federal Trade Commission is reportedly seeking to block the buyout, though Microsoft is currently looking into pushing the deal through without the firm’s authorization.
Even with the potential roadblocks from the FTC and CMA, Microsoft’s plans to bring Activision Blizzard under the Xbox umbrella will be one step closer to completion should the European Union approve the deal next week. It will still be some before this industry-changing buyout is completed, though, with much hinging on whether or not Britain’s CAT grants Microsoft’s impending appeal.
Source: Reuters