Microsoft Activision takeover deal: Company’s EU lawsuits only target cloud streaming rivals, sources say

Microsoft Corp’s lawsuits to address European Union antitrust concerns over its $69 billion acquisition of Activision focus solely on cloud gaming services, without mentioning rival Sony, people familiar with the matter said on Monday. case.

The US software giant has tried to dispel Commission fears that the deal could reduce competition for consoles and personal computers, PC operating systems and cloud game streaming services. However, the absence of a Sony solution suggests that the Commission no longer has concerns about competition in the console market.

Microsoft submitted its proposal to the European Commission last week but did not disclose details.

The sources said Microsoft had offered 10-year licensing agreements for cloud gaming services, citing Nvidia, Ukraine-based cloud gaming provider Boosteroid and Japan’s Ubitus as examples.

The EU’s competition authority has given rivals and clients until the end of this week to comment before deciding on the deal by May 22, it said. they stated.

Microsoft’s European offer is narrower than that of the UK competition agency, which includes licensing deals for cloud gaming services and a 10-year agreement with parity on content and quality for the franchise Call of Duty from Activision to reviewer and owner of PlayStation Sony.

The Commission is likely to agree to such licensing deals and clear the deal, other people with direct knowledge of the deal told Reuters, but it is unclear whether the British watchdog will accept these so-called behavioral remedies.

© Thomson Reuters 2023

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