The European Commission, which oversees competition in the EU, says such strategies could lead to “higher prices, lower quality and reduced innovation”.
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Brussels announced the opening Tuesday, November 8 of an in-depth investigation into the proposed takeover of the American video game publisher Activision Blizzard by Microsoft. The European Commission considers that this 69 billion dollar operation could “significantly reduce” competition in this market.
She explains that she fears in particular that Microsoft could “lock access to Activision Blizzard video games for consoles and PC” including the famous “Call of Duty” and that it is tempted to set up “strategies for the eviction of competing distributors of video games for consoles”. The EU executive, which oversees competition in the EU, believes that such strategies could lead to “higher prices, lower quality and reduced innovation”.
Decision expected no later than March 2023
The Commission also fears a reduction in competition in the market for PC operating systems. She believes users might be discouraged from buying PCs that don’t run Windows, Microsoft’s system made more attractive by access to Activision Blizzard games.
The Commission has announced that it will “carry out an in-depth investigation into the effects of the operation, in order to determine whether his initial fears are confirmed”. It now has a period of 90 days, until March 23, 2023 to make a decision. The opening of an in-depth investigation does not prejudge the outcome of the procedure.