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Microsoft's Activision Blizzard merger will face an "in-depth investigation" from the EU

The concern is that it may "reduce competition in the markets".

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While we've already been rather extensively following the UK Competition and Markets Authority's (CMA) investigation into Microsoft's acquisition of Activision Blizzard, it looks like we'll now be keeping tabs on the European Commission's investigation as well.

As noted in a new press release, it has been revealed that the European Commission will be opening an "in-depth investigation" into the acquisition, as it fears that the $70 billion deal will "reduce competition in the markets for the distribution of console and personal computers ('PCs') video games and for PC operating systems."

The European Commission has noted that it is concerned that following the deal that Microsoft may "foreclose access to Activision Blizzard's console and PC video games", especially that of Call of Duty, and that the investigation will determine any "potential economic incentive, to engage in foreclosure strategies" that may come about following it.

It's also said that while the console market is a big concern, one area in particular that has captured the European Commission's attention is that of the market for PC operating systems, and how this may "reduce the ability of rival providers of PC operating systems to compete with Microsoft's operating system Windows", and how it could "discourage users to buy non-Windows PCs."

"We must ensure that opportunities remain for future and existing distributors of PC and console video games, as well as for rival suppliers of PC operating systems," said Margrethe Vestager, executive vice-president in charge on competition policy. "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."

As for when the European Commission has to make a decision, it has 90 days to do so, meaning by March 23, 2023, an answer will be determined by this trade body.

Microsoft's Activision Blizzard merger will face an "in-depth investigation" from the EU


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