'MS·Blizzard Big Deal' Will It Pass UK Regulators?

UK Regulators "Monopoly Concerns Resolved"

[Image source=AP Yonhap News]

The '92 trillion won big deal' between Microsoft (MS) and Activision Blizzard, which faced antitrust regulatory hurdles in the UK, has crossed the final stretch toward completion.

On the 22nd (local time), according to the Wall Street Journal (WSJ) and others, the UK's regulatory authority, the Competition and Markets Authority (CMA), stated that MS's acquisition of Activision Blizzard "(the revised proposal submitted by MS) has largely alleviated concerns about monopoly."

In a statement released that day, the CMA said, "MS's proposal to partially transfer cloud gaming service rights to competitor Ubisoft is very new and substantial."

With this, the CMA explained that the path for the MS and Blizzard merger to be completed has opened. However, it added, "There are still concerns to be addressed regarding the revised proposal submitted by MS," and "we will continue consultations with them before making a final decision."

Bloomberg reported that the target completion date for the acquisition deal set by MS is next month on the 18th, and the CMA plans to conclude consultations with MS by the 6th of next month.

Brad Smith, MS Vice Chairman, said, "It is very encouraging to see positive progress in the UK regulatory review process," and added, "We will continue to work hard to obtain final approval."

Previously, the CMA demanded corrective measures, stating that the merger could lead to unfair competition, higher prices for users, fewer choices, and hindered innovation.

Similar to the UK, the final approval has not yet been granted in the United States due to antitrust controversies. On the other hand, the European Union (EU) regulatory authority, the European Commission, conditionally approved the acquisition in May after accepting MS's proposal to allow cloud gaming platforms to provide streaming services without paying royalties.

In January last year, MS acquired Blizzard for $68.7 billion (approximately 92 trillion won), marking the largest acquisition in the history of the global information technology (IT) industry. As a latecomer in the gaming market, MS pursued an aggressive merger and acquisition strategy to expand its market share, and by acquiring the gaming giant Blizzard, it rose to stand shoulder to shoulder with China's Tencent and Japan's Sony as a major gaming company.

This content was produced with the assistance of AI translation services.