Microsoft and Activision Two of the most powerful gamers in the sector, currently undergoing an EU antitrust trial. The issue is the acquisition by Microsoft of Activision and whether it will result in anti-competitive behaviour.
The antitrust authorities of the European Union are concerned that Microsoft’s acquisition Activision could result in an unsustainable monopoly in the gaming industry that could end up harming the consumer. The EU has previously blocked numerous major acquisitions and mergers like the planned merging of Siemens and Alstom because of antitrust concerns.
Activision, which Microsoft acquired from Activision
Microsoft announced plans to purchase Activision beginning in the month of January, for $68.7 billion, which is the largest gaming industry acquisition ever. Activision is one of the major players in the gaming sector and has franchises like Call of Duty, World of Warcraft along with Candy Crush.
The deal has received mixed responses from the gaming industry, with some of them expressing concern over how much power will be consolidated at the hands of only a few large players in the field. But, Microsoft has assured the public that the deal is not likely to result in negative anti-competitive behaviour.
The EU antitrust investigation
The EU antitrust investigation is a significant development during the acquisition of Activision by Microsoft. The hearing is anticipated to be over a period of time and during which it will be the European Commission will investigate whether the acquisition will result in anti-competitive behaviour.
If EU authorities determine that the acquisition is likely to result in anti-competitive behaviour, Microsoft could be forced to sell off the assets of Activision. This will not only affect Microsoft’s bottom line but may also have a major impact for the industry of gaming in general.
The EU antitrust investigation into the acquisition by Microsoft of Activision is a significant development within the world of gaming. The result of the hearing won’t only affect Microsoft or Activision but may also impact the gaming industry in general.