The European Commission has circulated a series of questions to gaming firms to examine whether Microsoft’s new proposal to the United Kingdom’s Competition and Markets Authority would be pro-competitive, sources said. — Bloomberg
BRUSSELS: European Union (EU) deal watchdogs are seeking feedback on Microsoft Corp’s fresh attempts to secure UK regulatory approval for its US$69bil takeover of Activision Blizzard Inc.
The European Commission, which already approved the deal in May, has circulated a series of questions to gaming firms to examine whether Microsoft’s new proposal to the United Kingdom’s Competition and Markets Authority (CMA) would be pro-competitive, according to people familiar with the matter and who spoke on condition of anonymity.
The proposed UK remedy is intended to win over the CMA, which is re-thinking its own veto of the transaction, and would give Ubisoft Entertainment SA rights to distribute Activision games in the cloud gaming market. The measure would apply globally, except in the European Economic Area.
Microsoft’s hopes for its landmark takeover of Activision rest on a forthcoming decision from the CMA.
The Redmond, Washington-based firm was given a second chance to get its deal approved by the UK regulator in August, under a new probe.
The CMA had previously cited concerns with fair competition in the cloud gaming market, and said that the deal could result in higher prices, fewer choices and less innovation for UK gamers.
But a revised proposal, which CMA chief executive officer Sarah Cardell called “structurally different” to Microsoft’s original pitch, may be enough to win over the regulator.
A spokesperson for the commission said that it was “closely following the developments in the United Kingdom and assessing their potential impact” in the EU case.
Microsoft declined to comment on the latest moves, which were reported earlier by Reuters.
The CMA is set to decide on the deal by Oct 18. — Bloomberg
