The European Commission delayed the decision to buy Activision Blizzard after Microsoft signed agreements with Nintendo, NVIDIA and other companies. As reported Reutersthe European regulator moved for the third time the deadline to approve (or deny) the merger. The Commission will have an additional month to review Microsoft’s proposed solutions to ensure that they call of duty It will be available on multiple platforms.
The regulatory body established that will wait until May 22 to decide whether to authorize the $69 billion purchase agreement. Although the European Commission has not offered details about its decision, it is clear that it has to do with the solutions proposed by Microsoft.
A few weeks ago, the Redmond Giant closed agreements with Nintendo and NVIDIA to offer call of duty and other Activision games for a term of 10 years. Subsequently, the technology firm signed for 10 years with Ubitus and Boosteroid, two cloud gaming platforms. According to Brad Smith, president of Microsoft, these contracts guarantee that the popular shooter will reach more people and devices than ever before.
Although the European Commission has postponed the deadline, some sources say it will approve the purchase. A few weeks ago, Reuters reported that the regulator would give the go-ahead to the acquisition after considering that the pacts with Nintendo and NVIDIA resolve the conflict. Although these were considered a publicity stunt in the war against Sony, 10-year commitments would be enough to convince regulators.
For now, Microsoft will have to wait until May 22 to know the official opinion of the European Commission. If the purchase agreement is approved, the decision could tip the balance in favor of the technology company in other territories.
Microsoft is shaping up to close the purchase of Activision Blizzard, despite Sony
According to rumors, the European Commission could approve the purchase of Activision Blizzard, so only the CMA and FTC would remain to be circumvented. The two regulators have opposed authorizing the merger deal on the grounds that it is anti-competitive. Sony’s complaints have had an effect on the UK Markets and Competition Authority, which suggests Microsoft sell call of duty as a mechanism to guarantee competition.
According to Michael Pachter, an analyst at Wedbush Securities, approval from the European Commission would be enough for the FTC to take the same path. If the CMA decides to block the deal, Microsoft would take the case to court. To comply with the laws while the trial is taking place, the technology would create Activision Blizzard UK PLC, an independent entity that maintains the status quo.
For the analyst, the 10-year licenses signed with Nintendo, NVIDIA and other companies are enough to convince regulators. No entity could compel Microsoft to provide support beyond 10 years.since we don’t know what the hardware will be like in 2033. “Microsoft can’t commit to supporting something it doesn’t know what it will be like, and there’s no regulator that forces them to do so,” he said.
The FTC announced a few days ago that it will review the agreements with Nintendo and NVIDIA. The regulator considers that they are an intentional movement, however, Microsoft has not revealed the specific details. The US authority wants to know how the commitments will be fulfilled, as well as the plans with other Activision games.
Like the CMA, the FTC is seeking to block the deal by any means possible. The regulator sued Microsoft in December, although the forecast it is not encouraging for the US authority. Redmond’s lawyers assure that the technology company has granted concessions, as happened in other million-dollar operations such as the purchase of Time Warner by AT&T.