China is said to have approved the Microsoft Activision deal with no further concessions, adding even more pressure to the UK’s CMA.
It’s quickly becoming clear that the Competition and Markets Authority’s (CMA) decision to block Microsoft’s acquisition of Activision Blizzard isn’t the deal destroyer some may have thought it’d be.
Aside from the US, the UK is the only country to have any serious reservations about the deal, with practically every other regulator so far unanimously approving it.
Recent additions to that list include the European Commission, who signed off on it earlier this week, and, as of today, China – in a move that’s sure to cheer up Microsoft and Activision execs.
Not only that, but it seems China’s State Administration for Market Regulation had zero qualms with the acquisition as it’s provided unconditional approval, suggesting it didn’t demand any further concessions.
Compare that to the European Commission, which at least asked that Microsoft ensure that Activision Blizzard’s games be made available on rival cloud gaming services and not just Microsoft’s.
This report comes courtesy of Seeking Alpha, but we’ll be sure to update this article should Microsoft and/or Activision Blizzard make their own statement.
It’s worth noting that China’s willingness to approve the deal likely stems from how little it really matters to them.
China is home to Tencent Games, a publisher far larger than Activision Blizzard and a subsidiary of the even larger conglomerate Tencent.
As of 2021, Tencent Games is second only to Sony in terms of revenue earned through gaming. So, Microsoft owning Activision Blizzard isn’t really going to put a dent in its business, as far as it’s concerned.
Regardless, having another country in its corner means Microsoft can more easily put pressure on the CMA to reverse its decision. An appeal has already been made and while that alone isn’t guaranteed to work, the CMA faces criticism not just from random gamers but actual MPs and even UK chancellor Jeremy Hunt.
‘I would not want to undermine [the CMA’s decision] at all, but I do think it’s important all our regulators understand their wider responsibilities for economic growth,’ says Hunt via The Telegraph, parroting concerns that blocking the deal makes the UK look unwelcoming to big businesses.
Meanwhile, everyone is still waiting for things to develop over in the US. Its Federal Trade Commission (FTC), much like the CMA, has proved far more sceptical of the deal and even filed a lawsuit to block it.
Said lawsuit hasn’t had a real update since the end of last year so there’s no telling if the FTC will dig in its heels or eventually capitulate. If it’s the former, then that lawsuit will be something of an uphill battle for the FTC, when only the CMA seems to agree with it.
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