Home Tech Topics Why Microsoft's Involvement in Activision's Antitrust Case Could Impact the Gaming Industry

Why Microsoft’s Involvement in Activision’s Antitrust Case Could Impact the Gaming Industry

Microsoft and Activision, two of the biggest players in the gaming industry, are currently facing an EU antitrust hearing. The hearing revolves around Microsoft’s acquisition of Activision and whether it could lead to anti-competitive behavior.

The European Union’s antitrust regulators are concerned that Microsoft’s acquisition of Activision could lead to a monopoly in the gaming industry, which could ultimately harm consumers. The EU has previously blocked several high-profile mergers and acquisitions, such as the proposed merger between Siemens and Alstom, due to antitrust concerns.

Microsoft’s acquisition of Activision

Microsoft announced its plan to acquire Activision in January 2022 for a staggering $68.7 billion, making it the largest gaming industry deal in history. Activision is a major player in the gaming industry, with franchises such as Call of Duty, World of Warcraft, and Candy Crush.

The acquisition has been met with mixed reactions from the gaming community, with some expressing concerns over the consolidation of power in the hands of a few big players in the industry. However, Microsoft has assured the public that the acquisition will not lead to any anti-competitive behavior.

The EU antitrust hearing

The EU antitrust hearing is an important development in the acquisition of Activision by Microsoft. The hearing is expected to last several months, during which the European Commission will investigate whether the acquisition will lead to anti-competitive behavior.

If the EU regulators find that the acquisition could lead to anti-competitive behavior, Microsoft could be forced to divest some of Activision’s assets. This would not only impact Microsoft’s bottom line but could also have a significant impact on the gaming industry as a whole.

Conclusion

The EU antitrust hearing on Microsoft’s acquisition of Activision is an important development in the gaming industry. The outcome of the hearing will not only impact Microsoft and Activision but could also have far-reaching implications for the industry as a whole.

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