The European Union Commission has launched an in-depth investigation (opens in new tab) into Microsoft's proposed acquisition of Activision Blizzard (opens in new tab). As seen elsewhere, the Commission is concerned that the acquisition could "significantly reduce competition" in the gaming market and allow Microsoft to "withhold access" to Activision Blizzard's console and PC video games, such as "Call of Duty" The Commission is concerned that this would result in. [The Commission is also concerned about the potential impact on streaming and subscription services "in particular," and that Microsoft could choose a "foreclosure strategy" (i.e., not offering games on competing services) or "lower the terms" for access It points out that.

In other words, the horn of anticompetitive practices is sounding. The Commission makes the curious aside that the impact of the proposed acquisition on the PC market "could reduce competition in the PC operating system market." In short, the combination of Windows, Game Pass, and Activision Blizzard games could "discourage users from purchasing non-Windows PCs."

This is a relatively new story and may bring back unpleasant memories for Microsoft, which has fought countless battles over Windows market dominance for decades. But for the everyday gamer or user, the idea that Microsoft is a serious contender in the OS arena is a real hurdle.

Activision Blizzard CEO Bobby Kotick responded to the announcement in an open letter to the company's staff (opens in new tab). As I said when we announced the merger, this is a long process. "We have already received approvals from countries including Brazil (opens in new tab) [...]. We continue to work cooperatively with regulators in other jurisdictions and the process is proceeding as we expect.

Kotick noted that due to its size, "regulators are trying to understand the gaming business better," and that Activision Blizzard "continues to work with the European Commission in the countries they represent, where they have many employees."

He concluded by stating that he "continues to expect [the acquisition] to close during Microsoft's current fiscal year (ending June 30, 2023)," which will allow the publisher to "compete better," which is very interesting.Modern If the staggering launch numbers for Warfare 2 (open in new tab) are any indication, Kotick and friends are competing well.

It's hard to see where this will end up. Other jurisdictions have passed the deal, but UK regulators and the US FTC still have big questions, and the EU has tried to get tough on big tech in recent years. The size of the deal and the recent backdrop of Nvidia's failed acquisition of ARM make it a prime target for regulators. The Commission's concerns about how it will affect sales of non-Windows PCs may seem almost quaint, but when talking about anti-competition investigations, it is exactly the kind of thing Microsoft does not want included in the discussion.

Well, at least it is an exercise in rebuttal. The most ingenious one is what if "Call of Duty" is a shitty game (open in new tab)? What would the regulators do then?

The Commission will now conduct an in-depth investigation into the transaction and report back within 90 business days. The Commission has stated that "the initiation of the detailed investigation does not prejudge the outcome of the investigation."