Reuters is reporting that EU antitrust regulators will approve Microsoft’s acquisition of Activision Blizzard next week. It’s likely to come on May 15, people familiar with the matter said. The approval comes after the CMA blocked the deal. The European Commission confirmed its plans to publish its verdict by May 22.
Last month, in explaining its decision, the CMA said that they blocked the deal because of concerns regarding the impact of the future of the cloud gaming market. “The deal would reinforce Microsoft’s advantage in the market by giving it control over important gaming content such as Call of Duty, Overwatch, and World of Warcraft. The evidence available to the CMA indicates that, absent the merger, Activision would start providing games via cloud platforms in the foreseeable future. Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities.”
Following the CMA’s decision, Microsoft announced its decision to appeal the ruling. Microsoft has reportedly hired a lawyer known for defeating the EU regulator in competition cases. The lawyer Daniel Beard KC, represented Apple after the EU demanded the company pay €13 billion in taxes because it claimed Ireland had offered it illegal state aid. Apple went on to win the appeal. Beard also represented Intel last year in a successful attempt to overturn a decade-old €1.1 billion fine after the EU claimed it was unfairly dominating the microchip market.
One of the reasons that the EU approved the acquisition despite the CMA’s block is due to the deals Microsoft made with Nintendo, NVIDIA, Ubitus, and Boosteroid. Microsoft’s willingness to offer game licensing deals will address antitrust concerns.