EU Commission initiates Phase 2 investigation into Microsoft’s Activision Blizzard acquisition

Here in the UK, the Competition and Markets Authority has entered a Phase 2 investigation of Microsoft's planned Activision Blizzard acquisition. Soon, the deal will undergo more scrutiny, this time from the EU, which also plans to enter a phase 2 investigation. 

Similarly to the CMA, one of the EU's big concerns around the deal is indeed Call of Duty and the future of the franchise under Xbox. The investigation will figure out whether the acquisition will give Microsoft the power to engage in ‘foreclosure strategies' to push competitors, like Sony's PlayStation, out of the market.

While Microsoft has been putting out plenty of public statements regarding Call of Duty, the company reportedly missed a deadline to file paperwork with the European Commission, triggering the phase 2 investigation.

The FTC is also currently investigating whether or not the deal should be approved in the US. The FTC, EU Commission and CMA should have their decisions in place in Q1 2023. Microsoft has a mid-2023 deadline to close the deal.

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KitGuru Says: Microsoft stayed true to its word with Minecraft, so I'd expect the same to happen with Call of Duty. The question is if regulators require a legally binding agreement to keep Call of Duty multiplatform, will Microsoft still go through with the deal? 

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