just weeks after UK regulators blocked the acquisition. The European Commission has concluded that the deal can pass thanks to commitments from Microsoft related to cloud gaming.
The EU found that Microsoft “would have no incentive to refuse to distribute Activision’s games to Sony” and that “even if Microsoft did decide to withdraw Activision’s games from the PlayStation, this would not significantly harm competition in the consoles market.” But EU regulators, much like the UK, did find the acquisition could harm competition around the distribution of PC and console games through cloud gaming services.
The European Commission has identified remedies to allow for the deal to go ahead through 10-year licensing deals that Microsoft has offered to competitors. These include a free license to consumers in EU countries that would allow them to stream via “any cloud game streaming services of their choice” all current and future Activision Blizzard PC and console games that they have a license for. Cloud providers will also be offered a free license to stream these games in EU markets.
These licenses are automatic and mean that consumers will have a right to stream Activision Blizzard games they’ve purchased or subscribe to on “any cloud game streaming service of their choice and play them on any device using any operating system.” It appears that the European Commission requested Microsoft offer this automatic license, and the Xbox maker will now apply this globally.
“Our decision represents an important step in this direction, by bringing Activision’s popular games to many more devices and consumers than before thanks to cloud game streaming,” says Margrethe Vestager, executive VP in charge of competition policy at the European Commission. “The commitments offered by Microsoft will enable for the first time the streaming of such games in any cloud game streaming services, enhancing competition and opportunities for growth.
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