The decision of the European Commission to validate the takeover of Activision by Microsoft is very good news for Microsoft. Even if the battle is far from over, the American company now has new arguments in its favour. But this agreement also highlights the differences in perception between Europe and the United Kingdom.
CMA and Europe Divide Over Xbox Cloud Market Share
EU competition chief Margrethe Vestager said on Monday that Microsoft had made concessions to allay its concerns. As stated in the validation detail, all Europeans who purchase an Activision game will be able to stream it on all cloud game streaming providers for 10 years.
For its part, the CMA reacted quickly by recalling why it had blocked this agreement and how Microsoft’s proposals, accepted today by the European Commission, were insufficient for it.
While the CMA and the European Commission both agree that this agreement will not negatively impact competition in the console market, they also believe that the Cloud is a buoyant market. But as reported by Financial Timesa point of divergence exists between the two entities on the method of calculating the cloud market.
It was a European official who suggested that the CMA had “overestimated” Microsoft’s share of the cloud game streaming market, suggesting that the estimate of 60% to 70% indicated by the British regulator in its decision finale included many subscribers to Microsoft’s Game Pass subscription service who don’t actually use cloud gaming features.
In other words, the CMA would have counted Xbox Game Pass Ultimate subscriptions in its calculations, while not all subscribers necessarily play in the cloud. “For us, it’s not a separate market, but a segment of the overall (video game) market,” the official said.
The rest remains complicated for Microsoft
While the CMA and Europe both agree that the console market is not at risk with this acquisition, Microsoft still has a long way to go to validate this historic deal for the gaming industry. video.
Microsoft plans to go to court to defend itself in the US, and is appealing the CMA’s decision in the UK. On this last point, we have also learned that Microsoft and Activision-Blizzard had hired the services of Lord David Pannick, a lawyer who notably worked for Queen Elizabeth II, Prime Minister Boris Johnson, the former director general of the BBC Mark Thompson, or Manchester City Football Club. This lawyer specializing in large cases is clearly an asset for Microsoft.
When the CMA’s decision was heard, the Activision boss was quick to react, indicating that the United Kingdom was closed for business and that this decision would “stifle investment, competition and creation jobs across the UK gaming industry. Following the decision of the European Commission, Bobby Kotick has declared that he wants to invest significantly in Europe
