MOSCOW (Pakistan Point News / Sputnik - 09th November, 2022) The European Commission announced on Tuesday an investigation into Microsoft's deal to buy Activision Blizzard, saying it was concerned that the takeover would reduce competition in the video game market.
"The point is to ensure that the gaming ecosystem remains vibrant to the benefit of users in a sector that is evolving at a fast pace. Our in-depth investigation will assess how the deal affects the gaming supply chain," Competition Commissioner Margrethe Vestager said.
The US tech giant announced a plan in January to buy its competitor for $69 billion in cash to create the world's third-largest gaming company by revenue, behind China-based Tencent and Japan's Sony.
The EU executive is concerned that microsoft may accumulate enough clout to push rivals out of the increasingly lucrative market by blocking distributors' access to Activision Blizzard's console and PC video games, especially to highly successful games such as "Call of Duty" and "Warcraft."
"When it comes to multi-game subscription services and/or cloud game streaming services in particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access, to the detriment of its rival distributors," it said.
Microsoft said the deal would bolster its subscription-based Game Pass portfolio of over 25 million users by launching Activision Blizzard games into Game Pass. Activision Blizzard has early 400 million monthly active players in 190 countries and three billion-dollar franchises.
