Microsoft's Acquisition of Activision Blizzard: Navigating the Regulatory Process

The proposed acquisition of Activision Blizzard by Microsoft has been under scrutiny by regulatory bodies worldwide. The process has been intricate, involving various entities from different countries. Below is an overview of the regulatory hurdles faced by Microsoft and Activision Blizzard, updated as the situation developed. As of October 13, 2023, the UK's Competition and Markets Authority has given the transaction its approval, allowing Microsoft to proceed with the acquisition. The regulatory process has raised several questions, including the need for approval, the role of regulators, and the potential impact on the gaming industry. Microsoft and Activision Blizzard have extended the acquisition deadline to October 18, 2023, with a potential penalty of $4.5 billion if the deal is not completed by then. The acquisition requires approval from regulatory bodies in the EU, UK, and US. In the UK, the CMA has provisionally approved the deal, subject to certain conditions, after Microsoft proposed selling cloud gaming rights to Ubisoft. The US FTC has withdrawn its administrative challenge, while the European Commission has approved the deal. Over 40 countries have given their approval, including Brazil, China, and Japan. The acquisition has significant implications for the gaming industry, with potential effects on competition, innovation, and consumer choice. Regulatory bodies aim to prevent antitrust issues, ensuring that the deal does not lead to a dominant position in the market. Microsoft must address concerns about the potential impact on the cloud gaming market and the distribution of Activision Blizzard games on non-Xbox platforms. The company has offered concessions, including making Call of Duty available on Steam and Nintendo platforms for at least ten years. The acquisition has sparked debate about the role of Call of Duty in the gaming industry and its potential impact on Microsoft's subscription and streaming services. Regulators must consider the potential effects on consumers, competition, and innovation, weighing the benefits of the acquisition against potential risks. The outcome of the regulatory process will have significant implications for the gaming industry, with potential long-term effects on the market and its players.