Microsoft’s purchase of Activision gets the OK from the EU

In break with UK, Europe says Microsoft's promises will remedy cloud-gaming concerns.

See full article...

 

[VinnieVega]

Not sure what the plan is honestly, they still need the UK dont they? Unless they plan on pulling out of there, not sure what the long play is here.

 

[BrianZ]

Seems to be a solid approval with concessions extracted to assure that the Blizz/Activision gaming isn't used to exclude other cloud streaming services (if you own the game you can stream it from any service 'free). Maybe these concessions are the path forward for the CMA to save face and approve the deal as well.

 

[Mr. Vapor]

have the right to stream those games with any cloud game streaming service of their choice and play them on any device using any operating system

I choose an AmigaOS powered Newton. EU law says Microsoft MUST support my choice!!!

 

[VinnieVega]

Good to know that common sense can prevail somewhere. Now all Microsoft needs to do is appeal the UK's CMA and this should be a done deal. The FTC is in the US isn't even a concern given its track record under Khan.

Problem is, the appeal in the UK (if it succeeds) only sends the case back to the exact same CMA to review. So if they dont like it now, not sure how theyd like it more after.

 

[d3x7r0]

I think it's important to realize that the EU, the UK and the US are working under different scenarios. While the XBox brand has a sizeable market share in the latter two markets, that is very much not the case in the EU. Playstation outsells Xbox heavily in europe to the point where you can reasonably argue that allowing this acquisition will not negatively impact the market in europe. Do note that last bit, it's important.

Now is this good for other markets like the US or the UK? Probably not. I'm personally not sure that blocking this to enforce competition on the Game Streaming market is worth it, but there's a fair argument to be made there (which was precisely what the CMA did in the UK). Overall it's up to MS and Activision to convince those other regulators.

 

[HiroTheProtagonist]

I choose an AmigaOS powered Newton. EU law says Microsoft MUST support my choice!!!

Looks like we found Stuart Campbell's account.

 

[whiteknave]

Not sure what the plan is honestly, they still need the UK dont they? Unless they plan on pulling out of there, not sure what the long play is here.

The UK knows all about pulling out, so they (UK) should understand if it comes to pass.

/s

 

[HandymanHandy]

Problem is, the appeal in the UK (if it succeeds) only sends the case back to the exact same CMA to review. So if they dont like it now, not sure how theyd like it more after.

At that point, imo CMA is going to be forced by the Govt to approve it. (Yes, I know they're "independent").
CMA's representatives are actually supposed to testify tomorrow or something like that in UK's parliament.

Edit: Source - 16 May 2023 - The work of the Competition and Markets Authority - Oral evidence - Committees - UK Parliament

 

[vonduck]

I choose an AmigaOS powered Newton. EU law says Microsoft MUST support my choice!!!

i don't really understand what the streaming bit mean. say i bought a bliz game for a one off fee. what does streaming via any service mean? they can charge me a streaming fee (for streaming) and i don't need to buy it again with a one off fee?

 

[Andrei]

Not sure what the plan is honestly, they still need the UK dont they? Unless they plan on pulling out of there, not sure what the long play is here.

Geofencing is a possibility.

 

[DarkMatterSparta]

I just cannot shake the feeling that this deal will end up being bad for gaming as a whole. However, Microsoft need's all the help it can muster. T

 

[ChefJeff789]

Not sure what the plan is honestly, they still need the UK dont they? Unless they plan on pulling out of there, not sure what the long play is here.

And suddenly Activision Blizzard UK is born, and their games are only purchasable as standalone titles and not available on GamePass in the UK.

 

[ChefJeff789]

I just cannot shake the feeling that this deal will end up being bad for gaming as a whole. However, Microsoft need's all the help it can muster. T

I'm not sure they need "all the help they can muster", but they've done shockingly poorly this generation with first-party titles. There's no reason besides GamePass to buy an Xbox right now.

 

[VinnieVega]

I just cannot shake the feeling that this deal will end up being bad for gaming as a whole. However, Microsoft need's all the help it can muster. T

It cant be imo. The only reason everyone and their mothers also get to have ABK games right now is because MS are buying them. If they dont, ABK games will go the highest bidder, and that will be on a game by game basis. Right now, MS are offering ABK and xbox PC games. Not just COD.

How will smaller game streaming services outbid sony, or MS for these games if the deal falls apart? Who will ultimately get ABK games on streaming services? That will probably never be one of the smaller companies like boosteriod. Those smaller companies will never be able to outbid the big corporations. So im not sure how CMA views this as proper "competition". All theyre doing is making sure the small providers, stay small and cant compete.

 

[jm_leviathan]

From the CMA's tweeted reply that is quoted in the article, it seems their position is that allowing the merger to go forward with conditions involves a greater level of regulatory intervention in the market than simply blocking it outright. The difference between the two positions seems almost philosophical.

 

[Sulne]

Its certainly interesting that the EU has taken a short to medium term view while the UK has taken a longer term one (with cloud, the UK had no problems with physical and digital IIRC), especially how Zenimax turned out (and that being a far smaller acquisition). It tells Sony and Nintendo you have 10 years to replicate these franchises (not an issue for Nintendo I suppose).

Its also interesting when this goes through (I can't see the CMA holding out) if it will trigger more buyouts from Sony in response. If thats the outcome then unless there is a blanket Bungie like agreement its going to make anyone but Nintendo have to choose sides even more.

But certainly an intriguing situation.

 

[Sulne]

Okay Grandpa. The only thing this comment does is show your age.

I assume that the EUs line is they can let it pass and whack MS down if or when they get out of line later- which sometimes works but often the damage is already done.

 

[Resolute]

It cant be imo. The only reason everyone and their mothers also get to have ABK games right now is because MS are buying them. If they dont, ABK games will go the highest bidder, and that will be on a game by game basis. Right now, MS are offering ABK and xbox PC games. Not just COD.

How will smaller game streaming services outbid sony, or MS for these games if the deal falls apart? Who will ultimately get ABK games on streaming services? That will probably never be one of the smaller companies like boosteriod. Those smaller companies will never be able to outbid the big corporations. So im not sure how CMA views this as proper "competition". All theyre doing is making sure the small providers, stay small and cant compete.

The only reason "everyone and their mothers" will get ABK games for a limited time is because Microsoft received pushback on the purchase. No pushback, none of this happens.

Also, ABK was opposed to being on multi publisher subscription services, which is why Microsoft is trying to take advantage of a sex assault scandal to buy the company - it wasn't going to be on Gamepass or any other such service otherwise. But at least with an independent ABK, you can be certain all of these games will be for sale on Xbox, Playstation and PC. And where capable, Switch. None of that is guaranteed in the future under Microsoft's ownership.

 

[VinnieVega]

The only reason "everyone and their mothers" will get ABK games for a limited time is because Microsoft received pushback on the purchase. No pushback, none of this happens.

Also, ABK was opposed to being on multi publisher subscription services, which is why Microsoft is trying to take advantage of a sex assault scandal to buy the company - it wasn't going to be on Gamepass or any other such service otherwise. But at least with an independent ABK, you can be certain all of these games will be for sale on Xbox, Playstation and PC. And were capable, Switch. None of that is guaranteed in the future under Microsoft's ownership.

All the regulators so far (including the CMA) agreed that this deal was a non issue in the console space. So your argument is pointless.

 

[jmauro]

After what Sony pulled with disabling Linux on the PS3 they can suck it. IDGAF, I want to see that company crash and burn.

Imagine if automakers disabled stereos in vehicles after sale because people could "potentially play stolen or pirated material." The outrage would be INSANE. That's PRECISELY what Sony did with Linux on the PS3... so fuck them.

I am on a lifelong Sony boycott after that bullshit.

That’s been Sony’s MO for years before and years since. They really are a real life example of the parable of the Scorpion and the Frog.

 

[AmanoJyaku]

Trusting the company that believes in embrace, extend, extinguish to not do that is... optimistic.

This hasn't been true for quite a few years now.

Even if it were still true, it's not applicable here as it was Microsoft's strategy for eliminating rival standards, particularly open source.

 

[Resolute]

All the regulators so far (including the CMA) agreed that this deal was a non issue in the console space. So your argument is pointless.

Good thing I wasn't talking about console space, except to note the current state would likely remain into the future if ABK remains independent. Nearly the entire post was about subscription services - inherently including cloud services - and how absolutely none of Microsoft's short term agreements are because they give a shit about competition big or small. They are doing this only because the baleful glare of regulators are on them, and they will stop doing it as soon as that eye looks away.

 

[Sulne]

Good thing I wasn't talking about console space, except to note the current state would likely remain into the future if ABK remains independent. Nearly the entire post was about subscription services - inherently including cloud services - and how absolutely none of Microsoft's short term agreements are because they give a shit about competition big or small. They are doing this only because the baleful glare of regulators are on them, and they will stop doing it as soon as that eye looks away.

Its certainly an interesting contrast to Sony and Bungie- I wonder if MS had a similar agreement it would have ruffled less feathers...but then I imagine locking in future exclusivity is key for MS since they seem to be moving away from hardware.

 

[vartec]

Not sure what the plan is honestly, they still need the UK dont they? Unless they plan on pulling out of there, not sure what the long play is here.

Well, people read between the lines that this thread is signaling exactly that:
View: https://twitter.com/lulumeservey/status/1658139416945217537


Basically the theory is this is somewhat veiled threat to shut down Activision Blizzard UK Ltd. completely, moving jobs from London to Dublin or elsewhere in Europe. With no Activision Blizzard UK Ltd. the CMA would no longer have standing in blocking the merger, but the intent is more to put the pressure on the UK government, which cannot afford yet another post-Brexit fuckup, where UK jobs go to Europe instead.

 

[iseptimus]

10 years in a drop in the bucket for the time to control a market segment. Ah well... MS will get there way. Shame.

 

[fknuckles]

I don't think it works that way, unfortunately. This decision isn't about whether Microsoft can stream Activision titles in the UK, but rather whether it can buy Activision, which is a binary thing... You either own Activision or you don't - you can't own it in one country and not in another.

Sure you can. Spin off the UK arm of Activision, Acquire everything but the UK Arm.

Don't forget that Microsoft UK is technically a separate company from Microsoft US as well. They just happen to have the same owner.

I honestly have always wondered what teeth the CMA (the UK or any other similar sized country) would have to enforce their wishes and this just might be a chance go see if everyone but the UK greenlights the deal.

 

[Resolute]

Well, people read between the lines that this thread is signaling exactly that:
View: https://twitter.com/lulumeservey/status/1658139416945217537


Basically the theory is this is somewhat veiled threat to shut down Activision Blizzard UK Ltd. completely, moving jobs from London to Dublin or elsewhere in Europe. With no Activision Blizzard UK Ltd. the CMA would no longer have standing in blocking the merger, but the intent is more to put the pressure on the UK government, which cannot afford yet another post-Brexit fuckup, where UK jobs go to Europe instead.

Unless Microsoft Gaming and Activision intend to stop doing business in the UK - and that isn't happening - I very much doubt moving the studio to another country will take them outside the jurisdiction of the CMA the way those commentators expect.

 

[reckless76]

Despite Sony's concerns, Microsoft "would have no incentive to refuse to distribute Activision's games to Sony" after a merger, the EC said, partly because "there are four Sony PlayStation consoles for every Microsoft Xbox console bought by gamers" across Europe.

LMFAO. Good thing market positions never change, and there's no chance the next Xbox leverages this deal to outsell the PS6.

 

[yildo]

It's a shame the Activision-Blizzard merger was allowed years ago