Microsoft's $69 Billion Activision Blizzard Acquisition Approved by EU in 2023 with Key Conditions

The European Commission (EC) officially approved Microsoft's $69 billion acquisition of Activision Blizzard in 2023, overcoming regulatory challenges and paving the way for one of the biggest consumer technology mergers in recent history.

While the United Kingdom's competition authority blocked the deal just weeks prior, the EU's thorough investigation concluded that the acquisition would not harm competition among gaming console manufacturers or multi-game subscription services. However, concerns were raised regarding potential impacts on cloud gaming and PC operating system markets.

To mitigate these concerns, Microsoft committed to providing a decade-long free license for gamers within the European Economic Area (EEA) to stream all current and future Activision Blizzard titles on PC and consoles. Additionally, streaming service providers will receive free licenses to enable seamless access for gamers to stream this content.

This approval marks the largest consumer tech acquisition since AOL's purchase of Time Warner in 2000. Microsoft's initial announcement of the deal was made in January 2022, but it encountered regulatory scrutiny in both the United States and the United Kingdom.

UK regulators opposed the merger citing fears of reduced competition and fewer choices for consumers, reflecting a broader push for stricter antitrust enforcement on major technology companies. Similarly, the U.S. Federal Trade Commission, led by Chair Lina Khan, filed a lawsuit aiming to block the deal, with hearings ongoing as of August 2023.

The EU's comparatively lenient approach is notable given its historical rigor in antitrust matters, particularly under the leadership of regulators like Margrethe Vestager, who have previously imposed significant penalties on tech giants such as Google, Apple, and Amazon.

Following the announcement, Microsoft’s stock remained steady, showing a 29% increase year-to-date, while Activision Blizzard shares rose nearly 1%, up approximately 2% for the year.

For news tips, contact Investopedia reporters at tips@investopedia.com.

Discover engaging topics and analytical content in Company News as of 20-05-2023. The article titled " Microsoft's $69 Billion Activision Blizzard Acquisition Approved by EU in 2023 with Key Conditions " provides new insights and practical guidance in the Company News field. Each topic is meticulously analyzed to deliver actionable information to readers.

The topic " Microsoft's $69 Billion Activision Blizzard Acquisition Approved by EU in 2023 with Key Conditions " helps you make smarter decisions within the Company News category. All topics on our website are unique and offer valuable content for our audience.