Faces Regulatory Hurdles: The biggest deal in the gaming industry’s history is facing challenges from regulatory bodies around the world because Microsoft plans to acquire Activision. The European Union (EU) has given its approval but on the other hand, the United Kingdom (UK) and the United States (US) have raised concerns about this entire competition.
To halt the deal temporarily the US Federal Trade Commission requested a court order. This was due to an investigation of its compliance with antitrust laws. And for this purpose, a trial has been scheduled for August.
Regulatory Split Threatens the Deal
The acquisition was rejected by the UK Competition and Markets Authority (CMA) because they have a sense of fear that it will limit the innovation and choices for gamers. While the European Council approved it based on Microsoft’s promise that they will provide fair competition and free access to Activision games for European players and cloud gaming services. With all of these differences of opinion, we only got to know about the uncertainty about the outcome of the deal.
Microsoft’s Long-Term Strategy and Industry Impact
To strengthen its position in the gaming industry, and to catch up with its competitor, Sony, Microsoft is interested in Activision. Microsoft sees the future of the gaming industry in subscription-based services like Xbox Game Pass and cloud gaming. Through subscription and streaming, they aim to provide players with access to a wide range of games. It helps them move from traditional individual purchases.
Uncertain Outcome and Potential Consequences
Due to the divided opinions of the regulators, the outcome of the acquisition still remains uncertain. If the deal does not proceed, Microsoft’s competitiveness and growth in the gaming industry could be affected. It may also raise questions about future innovation and choices for gamers.
