![]() ![]() The CMA and European Commission are currently in the second phase of their investigations. This is typically a far more detailed research phase designed to make sure the transaction doesn’t restrict competition in the regulators’ markets. This is where a more in-depth analysis of the merger's effects on the market will be analysed. Most M&A deals are approved during this phase.įor anything more complex where there’s a risk to competition, the regulators will request a second phase. Whenever regulators need to approve a merger or acquisition, the first phase is a relatively short period where the regulators will request information and send questionnaires to competitors. This generated plenty of headlines in August 2022 as it revealed various parties' concerns, including Sony's warning that Call of Duty becoming exclusive to Xbox could influence which consoles people buy. Interestingly, the Brazilian regulator (CADE) has a policy of publicly publishing the responses it has received from the games industry about the deal and its potential impact. Other regulators around the world are also looking into the deal, with the relevant bodies in Chile, Brazil and Saudi Arabia already giving their approval, but the three above carry the most weight. This Commission has been given a deadline of March 23, later extended to April 25, to conduct its investigation and issue a decision. Antitrust regulators first surveyed developers about their concerns over the deal, and on November 8 the Commission opened its own in-depth investigation into Microsoft's proposed acquisition. ![]() The third main regulator for Microsoft to overcome is the European Commission. Phase one of its investigation began in July, and on September 1 it recommended that it move into a second phase, with Microsoft and Activision given one week to provide evidence convincing the regulator that this deal will not cause a "substantial lessening of competition." The next regulator who is currently looking at this is the UK's Competition and Markets Authority (CMA). This review went through two phases of in-depth investigation, before the FTC issued a lawsuit on Decemin an attempt to block the deal. ![]() The first is the US regulator the Federal Trade Commission (FTC). There are regulatory bodies all over the world, but there are three main ones that Microsoft will want approval from to complete the buy-out. Regulatory bodies exist to try and make sure such deals don’t result in any antitrust issues, where one company can become overly dominant, or competition is harmed in such a way that it could lead to fewer choices, higher prices and/or less innovation.Ĭonsidering the scale and size of the deal, Microsoft would have to obtain antitrust approval before taking ownership of Activision Blizzard. "This deal has the potential to impact everyone, from the smallest indie developer to the big gaming giants" It has the potential to impact everyone, from the smallest indie developer to the biggest names in the business, and, of course, consumers. It's a potentially game-changing deal that could not just transform things for Microsoft and Xbox, but the entire games industry. This deal is - to use a professional business term - massive. Why does Microsoft need approval to buy Activision Blizzard?
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