Microsoft-Activision Deal Reportedly Faces Yet Another Major Hurdle
A new report suggests that Microsoft will receive an antitrust warning from the EU, presenting yet another snag in the deal.
Microsoft's proposed purchase of Activision Blizzard hasn't fared well in recent days, and it seems that yet another obstacle has emerged, this time from the European Union. A new Reuters report states that the EU will give Microsoft an antitrust warning, which will likely lead to a round of negotiations where Microsoft will offer possible concessions. The EU will render its decision by April 11.
The Microsoft-Activision Blizzard merger has remained one of the biggest news stories in gaming for months now, with both US and EU authorities expressing skepticism of the deal. The Federal Trade Commission and Microsoft have been involved in legal battles for weeks over the deal, with the tech giant going so far as to claim that the FTC's structure violates the US Constitution in a court filing. Microsoft later removed this language.
In recent days, we've also seen Nvidia and Google get involved in the action, with both companies reportedly providing information that backs a key FTC claim: that the deal with give Microsoft an unfair advantage in terms of mobile gaming, subscriptions, and the cloud. However, that Bloomberg report also suggests that Nvidia does not directly oppose the deal.
The key company openly opposing the deal is the one with the most to lose from it--Sony, often perceived as the most direct competitor to Xbox. Microsoft has already offered both Sony and Nintendo a 10-year deal to keep Call of Duty on all platforms, but it's unclear if PlayStation will take it.