Final hours! Save up to 55% OFF InvestingProCLAIM SALE

EU wants to know if Microsoft will block rivals after Activision deal

Published 10/06/2022, 02:07 PM
Updated 10/07/2022, 01:15 AM
© Reuters. FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration
MSFT
-
GOOGL
-
AMZN
-
ATVI
-
NVDA
-
SONY
-
META
-
GOOG
-

By Foo Yun Chee

BRUSSELS (Reuters) - EU antitrust regulators are asking games developers whether Microsoft (NASDAQ:MSFT) will be incentivised to block rivals' access to "Call of Duty" maker Activision Blizzard (NASDAQ:ATVI)'s best-selling games, according to an EU document seen by Reuters.

EU antitrust regulators are due to make a preliminary decision by Nov. 8 on whether to clear Microsoft's proposed $69 billion acquisition of Activision.

The EU competition enforcer also asked if Activision's trove of user data would give the U.S. software giant a competitive advantage in the development, publishing and distribution of computer and console games, the EU document shows.

The planned acquisition, the biggest in the gaming industry, will help Microsoft better compete with leaders Tencent and Sony (NYSE:SONY).

After its decision next month the European Commission is expected to open a four-month long investigation, underscoring regulatory concerns about Big Tech acquisitions.

Games developers, publishers and distributors were asked whether the deal would affect their bargaining power regarding the terms for selling console and PC games via Microsoft's Xbox and its cloud game streaming service Game Pass.

Regulators also wanted to know if there would be sufficient alternative suppliers in the market following the deal and also in the event Microsoft decides to make Activision's games exclusively available on its Xbox, its Games Pass and its cloud game streaming services.

They asked if such exclusivity clauses would reinforce Microsoft's Windows operating system versus rivals, and whether the addition of Activision to its PC operating system, cloud computing services and game-related software tools gives it an advantage in the video gaming industry.

They asked how important the Call of Duty franchise is for distributors of console games, third-party multi-game subscription services on computers and providers of cloud game streaming services.

© Reuters. FILE PHOTO: Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration

The questionnaire, with about 100 questions, asked which of the rivals such as Nvidia (NASDAQ:NVDA)'s GeForce Now, Sony's Playstation, Google (NASDAQ:GOOGL) Stadia, Amazon (NASDAQ:AMZN) Luna and Facebook (NASDAQ:META) Gaming could be considered the most attractive following the deal.

Respondents have until Oct. 10 to reply.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.