Chile Gives Green Light to Microsoft's Acquisition of Activision Blizzard

Microsoft has obtained another key approval for its proposed $68.7 billion takeover of Activision Blizzard. Chile's National Economic Prosecutor's Office recently cleared the merger after conducting a phase one investigation into its potential impact on competition. According to the office, the merger is unlikely to substantially reduce competition in the video game market, citing evidence and analysis of consumer preferences in Chile. The regulator believes that even if the merger is completed, there will still be ample competition in the video game space. It also noted that Microsoft and Activision are unlikely to pull Call of Duty from other platforms due to pressure from competitors like Electronic Arts, Ubisoft, and Take-Two, as well as Microsoft's rivals Sony and Nintendo. Additionally, the relevance of Call of Duty in Latin American markets is relatively lower compared to other regions. The regulator considered it unlikely that consumers would switch consoles to continue accessing Call of Duty, a concern previously raised by Sony. A survey of Chilean consumers suggested that the number of people who would do so would be low. The significant revenue generated by PlayStation versions of Call of Duty would also discourage Microsoft and Activision Blizzard from making it exclusive to Microsoft's ecosystem. In a statement, Activision Blizzard expressed pleasure that Chile's National Economic Prosecutor's Office has approved the acquisition, joining other regulators who have recognized the deal's pro-competitive benefits. The company stated that a combined Microsoft-Activision Blizzard will enhance competition, drive innovation, and increase benefits for players, developers, and the global gaming community. The merger has already been approved in Brazil and Saudi Arabia but faces increased scrutiny in the US, UK, and EU. The US Federal Trade Commission has presented the biggest challenge, filing a lawsuit to block the deal. While the trial is set for August, a pre-trial hearing is scheduled to take place today. The FTC's primary concern is Microsoft gaining exclusive access to Call of Duty and Activision Blizzard's other titles. Microsoft has proposed a ten-year deal guaranteeing Call of Duty's release on PlayStation devices and has also promised to make the game available on Steam and Nintendo consoles for ten years. Following the FTC's lawsuit, legal experts have stated that Microsoft is likely to prevail in this year's trial. The European Commission and the UK's Competition and Markets Authority are conducting their own in-depth investigations into the proposed acquisition.