Microsoft-activision deal faces EU inquiry

MICROSOFT’S proposed $69bn (£60bn) takeover of games developer Activision Blizzard faces an in-depth competition investigation by the EU amid concerns that the software giant could thwart access to blockbuster franchises such as Call of Duty.

The European Commission said Microsoft, which owns the Xbox, may “foreclose access to Activision Blizzard’s console and PC video games, especially to high-profile and highly successful games”.

The takeover of Activision – which owns some of the most popular games, including World of Warcraft and Guitar Hero – would make Microsoft the world’s third largest gaming company and boost its roster of titles for Game Pass subscribers, who pay a monthly fee to access a range of different titles.

The deal is already facing scrutiny from antitrust agencies around the world. Microsoft last month accused the UK’S Competition and Markets Authority of relying on “self-serving” input from rival Sony in its deliberations. The US Federal Trade Commission is also reviewing the transaction.

Microsoft said it will work with the EU to address any “valid” marketplace concerns. “Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and Playstation,” the company added.

The EU last month questioned video games developers, publishers, distributors, competing operating systems and providers of cloud services about the possible negative effects of the deal.

Regulators said yesterday their preliminary inquiry showed the deal could “significantly reduce competition on the markets for the distribution of console and PC video games”.

The EU’S merger regulator set a March 23 deadline for its so-called phase 2 investigation.