As expected, the European Union sent its list of issues with the Activision Blizzard takeover as a warning to Microsoft.
After a rather calm month of January for the progress of the takeover of Activision Blizzard by Microsoft at the level of the competition authorities, things should accelerate in February.
That’s it ! The EU would have returned to Microsoft its warning about the takeover of Activision Blizzard, according to the firm MLex.
The CMA(UK) should also issue its guidance in the coming days.
— Cassim Ketfi (@NotCassim) January 31, 2023
On January 31, we learned that the European Union had sent Microsoft its warning letter regarding the proposed takeover. An expected step in the procedure after the maneuvers of the FTC to change the course of the file on the old continent.
The media Bloomberg in turn confirms this information through its own sources.
What it means
This warning letter has not yet been made public. This is an important step for the takeover project since it is an opportunity for the European Union to formalize the points of attachment where the takeover project worries it about the competitive market. Note that this is not formally an adverse opinion or an attempt to block as is the case with the FTC action.
This is a basis that Microsoft can use to negotiate and potentially obtain the precious takeover authorization if the firm can convince the European Union. As we indicated in our dossier, the European Union has set April 11, 2023 as the deadline for judging the project.
Unfortunately the Bloomberg article does not elaborate on the issues highlighted by the warning letter. In particular, they should concern the issue of the availability of the publisher’s achievements such as call of duty on platforms competing with those of Microsoft. Cloud gaming services like GeForce Now would also be watched closely by the EU.
A tight schedule
The challenge for Microsoft is therefore to succeed in its negotiations with the EU as quickly as possible while signing compromises that the firm can also push with the FTC in the United States or the CMA in the United Kingdom.
The decision of the latter is also eagerly awaited. The British cabinet Equity Report indicates that the English authority could publish its provisional conclusions as early as next week, between February 6 and 10, 2023.
The proposed takeover of Activision Blizzard by Microsoft should therefore experience decisive developments in the days to come.
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