Microsoft’s license offer should probably satisfy the EU at Activision Deal

Microsoft’s offering of licensing deals with competitors is likely to ease EU antitrust concerns over its $69 billion (nearly Rs hurdle to take.

Microsoft announced the activity Offer in January last year, the biggest ever to take on leaders Tencent And Sonyin the booming video game market and in the metaverse These are virtual online worlds where people can work, play and socialize.

The European Commission, which is scheduled to decide on the deal by April 25, is unlikely to require Microsoft to sell assets to get its approval, the people said.

Activision shares rose 1.8 percent in premarket trading after the story was published by Reuters.

Microsoft President Brad Smith said last month the US software giant was willing to offer licensing deals to competitors to address antitrust concerns, but that it would not sell Activision’s lucrative product call of Duty Franchise.

Smith said it’s neither feasible nor realistic to think that any game or part of Activision could be cut and separated from the rest.

The EU competition authority declined to comment.

Microsoft said it is “committed to providing effective and easily enforceable solutions that address the European Commission’s concerns.”

“Our commitment to give Sony, Steam, NVIDIA and others 100 percent equal access to Call of Duty long term preserves the benefits of the deal for gamers and developers and increases competition in the market,” said a Microsoft spokesperson.

Last month, Microsoft announced it had signed 10-year licensing deals with Nintendo and Nvidia, who will bring Call of Duty to their gaming platforms, with the deals being conditional on the Activision deal being given a green light.

The deal is facing regulatory headwinds in the UK, where the UK competition regulator has proposed that Microsoft divest Call of Duty to assuage its concerns, while the US Federal Trade Commission (FTC) has asked a judge to block the deal.

© Thomson Reuters 2023