The European Commission has given approval to Microsoft's $69 billion acquisition of Activision Blizzard, a major win for the technology giant as the deal is currently facing challenges in other parts of the world. While the merger could potentially harm competition in the fast-growing market for cloud gaming services, Microsoft's concessions were deemed sufficient to address antitrust concerns related to the deal.
As part of its offer, Microsoft has committed to a 10-year agreement allowing European consumers to play Activision titles on any cloud gaming service. Additionally, Microsoft has pledged not to reduce the quality or content of its games made available on competing streaming platforms. The European Commission noted that these commitments fully address the identified competition concerns and represent a significant improvement for cloud game streaming compared to the current situation.
The Microsoft acquisition would make the company the third-largest game publisher in the world, following Tencent and Sony. However, the deal is still facing challenges in the United States and the UK.
Microsoft has stated that its commitment to game streaming will extend beyond the European Union. In a statement, Microsoft President Brad Smith said, "The European Commission has required Microsoft to license popular Activision Blizzard games automatically to competing cloud gaming services. This will apply globally and will empower millions of consumers worldwide to play these games on any device they choose."
Activision CEO Bobby Kotick has called the requirements "stringent" and has pledged to expand investments in EU workers. "Our talented teams in Sweden, Spain, Germany, Romania, Poland, and many other European countries have the skills, ambition, and government support needed to compete effectively on a global scale," Kotick said in a statement. "We expect these teams to grow and prosper given their governments' firm but pragmatic approach to gaming."