Microsoft's charm offensive with COD contracts reportedly pays off in the EU

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Microsoft's charm offensive with COD contracts reportedly pays off in the EU

Microsoft has been on a tear lately, offering a 10-year deal for Call of Duty to anyone who will let it go out of style. Nintendo and Nvidia have signed deals with the U.S. tech giant in recent months, and if Microsoft's acquisition of Activision Blizzard goes through, COD will continue to appear on these companies' platforms (open in new tab) for at least the next 10 years. Microsoft has offered the same deal to Sony and Steam in the past, but the two companies rejected it because the former would not settle for anything less than blocking Microsoft's acquisition, and the latter because Gabe Newell did not understand the implications (opens in new tab).

But it turns out that may be enough for the EU, three sources told Reuters (opens in new tab), that Microsoft's takeover play will likely "address the EU's antitrust concerns" over the Activision acquisition It would be enough, he said, to pave the way for European regulators to approve the deal at some point in the future. Of course, Sony will do whatever it can in the meantime to change that.

The COD series of deals is part of an attempt to convince regulators around the world that Microsoft can be trusted as the responsible manager of Activision's myriad properties.

I can't help but wonder if Sony regrets making such a fuss about COD in particular, rather than the broader implications of this whole deal. While I don't think Sony isn't worried about COD, I've always believed that they chose to focus their campaign around the series because it was quickly recognized, garnered mainstream coverage, and scared Sony fans away from the possibility of a PlayStation exit. But if Reuters' sources are correct, Microsoft was presented with a regulatory problem that could be solved fairly easily: make a deal like the ones with Sony and Nvidia and people would not have to worry.

But even if the EU were to approve the acquisition, the battle is not yet over. Microsoft still has to placate the US Federal Trade Commission (open in new tab) and the UK Competition and Markets Authority. The latter has suggested that Activision be dissolved before Microsoft approves the acquisition (opens in new tab). This is not a final ruling, and both regulators could still be persuaded, as in the EU, but Microsoft still has work to do to cross this line.

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