Activision takeover: what if Microsoft receives unexpected support?
Game news Activision takeover: what if Microsoft receives unexpected support?
Today, not a day goes by without Microsoft taking over Activision Blizzard. It must be admitted that the American colossus is waging a real war on several fronts. That image is first of all, by trying to prove to the media that this takeover is going to benefit the entire industry. That competition, by fighting with the three major market regulators to get them to give the green light. Towards a happy ending?
Summary
- The soap opera continues
- European Commission and CMA as reinforcements?
The soap opera continues
As you already know if you follow us regularly on the JV, Microsoft’s proposed takeover of Activision Blizzard is currently being pursued by major market regulators such as the FTC (United States), CMA (United Kingdom), and the European Commission. The agency felt that Call of Duty exclusives could be disastrous for competition in the sector, whereas the arrival of Activision’s games on Game Pass on Day 1 would make the service too strong.. Microsoft has been desperately defending itself for several months against accusations from both regulators and its main competitor, Sony.
In December 2022, the FTC began proceedings to block the takeover at the instigation of its president, Lina Khan, who is known to be hostile to the GAFAM monopoly.. However, the agency chose to file the complaint in administrative court rather than federal court. This means that common ground can still be found so that the agreement is ratified definitively. For this, the American giant should hypothetically receive various concessions. As you will understand, if communication is not completely cut off between Microsoft and the FTC, the reported exchange appears chaotic. We remember that among the experts working to make the Microsoft / Activision marriage possible, we find Rima Alaily, normal such a complicated business.
European Commission and CMA as reinforcements?
This is via Resetera users Idas, to whom we owe so much information regarding this takeover affair, that we know more about Microsoft’s state of mind after the disappointment of the last few weeks. Reports from MLex, an independent media organization that provides regulatory risk analysis, at preliminary hearings indicate that all potential solutions submitted to the European Commission and CMA will also be submitted to the FTC. Beth Wilkinson, Microsoft’s lead attorney, hopes this will lead to a positive resolution that works for everyone.. The two sides agreed to an expedited timetable so the FTC could check the paperwork quickly.
The most interesting information comes from Beth Wilkinson’s statement to the administrative judge. He explained that in spite of everything, if no solution is found with the FTC, operations will continue and be terminated in all jurisdictions upon acceptance of the agreement.. In other words, if the European Commission and CMA approve the proposed acquisition, then Microsoft will turn a deaf ear to the FTC’s claims. He will consider that the deal is validated and will go ahead. As a result, the agency led by Lina Khan will definitely want to take the case to federal court, but if the regulators of the other two most important markets agree to the takeover, it will be very difficult to come up with a valid argument. And Microsoft knows it. For now, the American giant seems rather confident about the CMA and the European Commission’s decision. UK regulators have also postponed to April 26 the regulatory deadline for publication of the final acquisition report. This deadline was previously set on March 1. However, this does not prevent the CMA from issuing its judgment before the stated date.
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