Microsoft move towards acquiring Activision but face heavy scrutiny from the EU antitrust agency
Microsoft is gearing up to face serious scrutiny from EU Antitrust for their $68.7 billion deal to buy Activision, a video-game firm. Microsoft has managed to dodge such inquiries in the past, but this deal has put them on the radar. There have been previous complaints against Microsoft, but they were not investigated. In addition, this deal to buy Activision forecasts Microsoft to acquire many of Activision’s monthly users to the Microsoft Game Pass, which can be seen as non-compliance with the competition laws.
Antitrust scrutinizes Microsoft
Microsoft is set to be under heavy scrutiny from the EU antitrust agency ahead of the transaction. The analysis will determine whether Microsoft complies with the competition laws. The issues that are most likely to be reviewed is the input foreclosure. This means that Microsoft could make specific Activision titles exclusive to the Xbox or its games store. This speculation arises after the acquisition of Zenimax and Microsoft, making Starfield exclusive to Xbox. If this is done to famous titles such as Call of Duty, or World of Warcraft, this could cause a considerable disparity and unfairness in competition. The European Commission might ask Microsoft for some commitments regarding the distribution of games before they are allowed to go ahead with this deal.
Whether Microsoft agrees with the stated commitment or finds a way to defend this acquisition will be soon to see. Acquiring Activision is one of the most significant moves in recent history, so it is natural to see other organizations raising concerns with fair competition laws globally. Time will tell if this acquisition makes an impact that coincides with the forecasts and reports.