EU approves Microsoft’s purchase of Activision Blizzard, blocked by UK

The European Commission approved on Monday the acquisition of the American video game giant Activision Blizzard by Microsoft, which will pay US $ 69,000 million, three weeks after a british veto that calls into question the merger.

The Commission, the executive body of the European Union (EU), indicated in a statement that Microsoft had committed to respect measures that guarantee competition in the online gaming market.

These commitments “fully resolve the competition concerns raised by the Commission”, he added.

Microsoftwhich already owns Xboxembarked more than a year ago on the acquisition of Activision Blizzard, maker of iconic games such as “Call of Duty”, “World of Warcraft” and “Candy Crush”.

If the transaction is completed, Microsoft it will become the third largest video game company in turnover, behind Tencent and the Japanese Sony, manufacturer of the PlayStation.

The European Commission, which oversees the application of competition regulations in the block of 27 countries, had opened an examination on this merger in November.

Despite the green light announced this Monday, the future of the acquisition remains uncertain.

The UK Competition and Markets Authority (CMA) announced on April 26 its decision to block it, arguing that it would affect competition in the sector.

But Microsoft appealed. “This decision reflects a misunderstanding of this market and how cloud technology works.”the group declared.

The green light from Brussels should give you compelling arguments to challenge the decision of the CMA before the Competition Appeal Tribunal (CAT) in the UK.

“If Microsoft does not win the appeal before the CAT, it will not be able to go ahead with the acquisition even if the European Commission approves it.”explained Anne Wittspecialist in competition law at EDHEC (France).

“Unless Microsoft decides to exit the UK market, but that seems unlikely.” added.

Source: AFP