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Microsoft set to win EU nod on Activision with licensing offer

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With its proposal of licencing agreements to rivals, Microsoft Company is anticipated to obtain EU antitrust permission for its 69 billion USD acquisition of Activision, as per three individuals with knowledge of the situation, assisting it to clarify a huge obstacle.

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Image Source: theprint.in

In January of last year, Microsoft introduced its largest-ever bid for Activision to compete with leaders Tencent and Sony in the thriving videogame market and to delve into the metaverse, which are online virtual spaces where individuals may work, play, and interact socially.

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According to the individuals, the European Commission, which is anticipated to make a decision on the contract by April 25, will not require Microsoft to sell off assets in order to gain approval.

According to one of the sources, in addition to licencing deals for competitors, Microsoft might be required to provide other behavioural solutions to appease the worries of parties apart from Sony. Such solutions typically address the merged company’s future actions.

Microsoft said it was “committed to offering effective and easily enforceable solutions that address the European Commission’s concerns.”

Source: finance.yahoo.com

Activision shares were up 2.6 per cent in delayed trade after rising 1.8 per cent in pre-market trading following the publication of the Reuters article.

Over the past month, Microsoft President, Brad Smith, stated that the company was prepared to provide rivals licencing deals to resolve antitrust issues, but it was not going to sell Activision’s remunerative “Call of Duty” franchise.

Smith stated that it is neither feasible nor realistic to believe that one game or one piece of Activision can be detached from the remainder.

Microsoft revealed that it had decided to sign 10-year licencing agreements with Nintendo (7974.T) as well as Nvidia (NVDA.O) to introduce Call of Duty to their respective gaming platforms, with the approvals contingent on the Activision deal being approved.

Also Read: Microsoft Considers $10 Billion Investment in ChatGPT Creator

The deal is facing regulatory challenges in the United Kingdom, where the UK Competition Commission has recommended that Microsoft oust Call of Duty to solve its issues, and in the United States, where the Federal Trade Commission (FTC) has questioned the jury to stop the offer.

“Our commitment to grant long term 100% equal access to Call of Duty to Sony, Steam, NVIDIA and others preserves the deal’s benefits to gamers and developers and increases competition in the market,” a Microsoft spokesperson said.

Source: finance.yahoo.com
Activision

Microsoft to Offer Call of Duty on Nintendo Devices if Activision Deal Closes

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Microsoft has entered a 10-year deal with Nintendo to release “Call of Duty” (CoD) on Nintendo devices if the Activision Blizzard merger goes through.

Microsoft announced on Tuesday that if its $69 billion takeover of the game’s developer, Activision Blizzard, is completed, it would bring the popular video game brand Call of Duty to Nintendo systems.

Activision
Image Source: seattletimes.com

Call of Duty, an enduring brand in which players engage in combat in the past, present, and future, is Activision’s flagship product. It has brought in more than $30 billion in revenue for the company.

Antitrust authorities from all around the world are currently investigating Microsoft’s acquisition of Activision, the biggest consumer technology transaction since AOL acquired Time Warner in 2000. Microsoft and Nintendo’s agreement may help allay concerns about the deal’s antitrust implications.

According to Bloomberg, Microsoft officials are meeting with USFTC chair Lina Khan as well as other members this week to present their final justification for the deal’s approval.

Read More: Microsoft eyes “super app” to challenge Apple and Google’s dominance of mobile search

Microsoft Gaming CEO Phil Spencer noted, “Microsoft has entered into a 10-year commitment to bring Call of Duty to @Nintendo following the merger of Microsoft and Activision Blizzard King.

Microsoft is committed to helping bring more games to more people, however, they choose to play. Microsoft has committed to continue to offer Call of Duty on @Steam simultaneously to Xbox.”

The action is being taken as Microsoft awaits the FTC’s regulatory review of its proposed merger, which has been vigorously contested by Sony, the rival manufacturer of the PlayStation console, who thinks that the possibility of Call of Duty becoming exclusively available on Microsoft platforms would provide the company an unfair competitive advantage in the video game industry.

Regulators in the European Union and the United Kingdom have launched antitrust investigations into the transaction to determine whether it will harm competition. The EU is worried that Microsoft would deny competitors access to titles like Call of Duty. Microsoft has made assurances related to Call of Duty in an effort to allay concerns this week.

The company claims that the Activision acquisition will benefit players and boost industry competition. According to reports, the FTC is likely to approve the acquisition. Previously, Microsoft and Activision stated that they anticipated the agreement to be signed before the mid of 2023.

International regulators assessing the deal have frequently questioned if Call of Duty, one of Blizzard’s most popular titles, will be made inaccessible to PlayStation fans.

Microsoft has consistently assured authorities that the series would remain available on all current platforms, which at the moment include Xbox, PlayStation, and PC, and claimed that stopping PlayStation publication would be fiscally irresponsible.

Microsoft president Brad Smith had earlier this week announced that Microsoft had made a 10-year deal with Sony to make future Call of Duty games available on the PlayStation.

Sony has protested Microsoft’s acquisition of Activision, claiming that doing so would limit the options available to players. Microsoft’s initial proposal to keep Call of Duty on the PlayStation for “several more years” was rejected by Sony as “inadequate on many levels.”