As it examines the transaction, the European Commission is said to have questioned competing gaming firms about Microsoft's proposed $68.7 billion acquisition of Activision Blizzard.
Following the merger, EU regulators reportedly asked other game makers if they thought Microsoft may prevent their access to Activision Blizzard's games, according to a document seen by Reuters on Thursday. It also questioned rivals about the possibility that Microsoft's acquisition of user data might give the U.S. corporation an edge in the creation and marketing of console and computer games.
Microsoft submitted its takeover proposal to the European Commission last week. Nov. 8 is the prospective deadline for whether the EU will approve the deal. Microsoft will be able to better compete with giants Tencent and Sony thanks to the upcoming acquisition, which will be the largest in the gaming sector. The European Commission is anticipated to launch a four-month inquiry following its decision next month, highlighting regulatory worries about Big Tech acquisitions.
In addition, regulators wanted to know if there would be enough substitute vendors in the market after the transaction and if Microsoft would elect to make Activision's games solely available on its Xbox, Games Pass, and cloud game streaming services.
They inquired as to whether such exclusivity provisions would strengthen Microsoft's Windows operating system in comparison to competitors and whether the addition of Activision to its PC operating system, cloud computing services, and game-related software tools gives it a competitive edge in the video gaming sector.
They inquired as to the significance of the Call of Duty series to publishers of video games for consoles, operators of computer multi-game subscription services, and suppliers of cloud game streaming services.
Regulators in the U.K.,. are also keeping an eye on the acquisition; the U.K.'s Competition and Markets Authority expressed concern last month that Microsoft's acquisition of Activision would "substantially lessen competition" in the gaming sector.
"We are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming," Sorcha O'Carroll, senior director of mergers at the CMA said. Microsoft declared that it is prepared to cooperate with the CMA to calm its worries.
The questionnaire, which had roughly 100 questions, asked which of the competitors, including Facebook Gaming, Google Stadia, Sony's Playstation, Nvidia's GeForce Now, and Amazon Luna, maybe the most alluring after the deal. Responses must be submitted by Oct. 10.
