Microsoft's acquisition of Activison Blizzard

[AshHunter216]

According to Bloomberg, the chances of overturning the CMA decision are still very low:



So, don't believe what xbots will tell you, the deal is still dead.

It's not going to stop them from arguing that MS could just pull out of the UK and force the deal through, even though the terms of the deal prevents that from even being an option.

It is funny that each side of this has their favorite regulator though, lol. I guess it came down to which regulator trusts behavioral remedies.

 

[Swift_Star]

At least now we don't have to worry about waiting for what the next regulator's decision is going to be, barring any drama over whatever luck the FTC has in court.

It seemed like from the beginning the EU took the softest stance on MS out if the big 3 regulators.

They argued in their final report that Playstation is too popular in the EU for MS to want to pull COD. They also argued that CoD isn't that popular in the EU anyway.

The antitrust EU Comission is heavily political, so if MS lobbies enough, they'll budge. That's the main reason why these bodies should always be independent and composed of people unable to be politically influenced, like in the UK.
Who would have thought, though, that Brexit would be what prevents big techs of having their way?

 

[AshHunter216]

The antitrust EU Comission is heavily political, so if MS lobbies enough, they'll budge. That's the main reason why these bodies should always be independent and composed of people unable to be politically influenced, like in the UK.
Who would have thought, though, that Brexit would be what prevents big techs of having their way?

Yep, were it not for the UK, MS would be preparing to finalize today.

Ultimately, it seems like the worse Xbox is doing in a region, the more likely the regulators in that region are to approve of the deal.

 

[BloodMod]

Thread title updated.

 

[AshHunter216]

The next step for the FTC is their internal trial right?

 

[Swift_Star]

Yep, were it not for the UK, MS would be preparing to finalize today.

Ultimately, it seems like the worse Xbox is doing in a region, the more likely the regulators in that region are to approve of the deal.

It makes sense, tbh, Xbox is utter irrelevant in Europe, but it is relevant in the US and UK.
EC is the odd one out here, since both FTC and UK blocked the deal.
Deal is still dead, regardless of what era is saying right now.

 

[Dabaus]

This feels like when a team of down 3-1 in a playoffs and they eke out a win in game 5. They’re still going to lose but it’s just been dragged out.

 

[Gediminas]

so, after Bethesda, took EC one in the mouth from m$.

after this, EC will take in the Ass.

Spineless doormats.

 

[AshHunter216]

Reddit is swarming with Xbox fanboys claiming that MS will just leave the UK in order to close the deal. They really love that talking point.

 

[thicc_girls_are_teh_best]

I have some thoughts on this, but I'll need some time to formulate them more.

Interestingly the EC seem to be forcing MS to provide ALL ABK games to cloud providers as a free license. Though I wonder if that's still with the 10-year scope of the current deal offerings, it does seem to gut some of the sliminess of MS's contracts where they get 100% of the cloud proceeds from these (mostly) BYOG providers. And obviously, also goes well beyond just COD access.

While, yes, this does mean proceedings will get dragged out longer than they ought to, the EC's approval isn't actually the big win MS probably wanted. They're being forced to expand the offer to all ABK games. They're being forced to give cloud providers free access to these games. They probably will not be able to get 100% of the revenue proceeds from in-game purchases now, either, going at the rate of how much MS's original 10-year offer has been neutered.

I know today's news is disappointing for those who were hoping the deal would die on this day, and I guess for the EU market this clears MS to do partial foreclosure strategies with ABK games on PlayStation systems (if even the CMA said partial foreclosure of COD on PS would not create a net negative, what makes you think the EC would differ on that point?). However, it does seem they still neutered a good deal of MS's benefits from the 10-year deals they've been throwing around, so that is a consolation prize.

It might be possible that MS and ABK renegotiate the deal to leave the UK requirement out? I don't know if that's possible, or if the shareholders would agree to it, but if so then I suppose they would just handle ABK operations differently in the UK to where it still operates as its own publisher fully independent of Microsoft. So, Microsoft would not get any sales proceeds of ABK games in that market unless the sales are on actual Xbox consoles, for example, and we know how poorly most 3P games have been selling on Xbox in the UK.

Reddit is swarming with Xbox fanboys claiming that MS will just leave the UK in order to close the deal. They really love that talking point.

They are brainlets not worth listening to.

However, I can see a possibility of MS and ABK shareholders & board members agreeing to renegotiate the deal and compartmentalize ABK to its own publishing unit in the UK market 100% separate from Microsoft. I think there's a specific term for this, but I'm not big into legal lingo.

ABK would just have to operate as an independent publisher in the UK market and MS gets none of the sales revenue from ABK sales in the market unless the sales are on Xbox consoles. In other words, MS wouldn't get very much in sales revenue from ABK games in that market .

What MS and ABK are really hoping to avoid, is needing to do a similar thing in the US in case the FTC wins in court proceedings. If that were to happen, I think it's almost 100% chance that MS & ABK just kill the deal, because MS wouldn't want to forfeit the majority of revenue of ABK games in their two strongest markets.

 

[On Demand]

Exactly why the EU is full of politically paid influences

The Microsoft / Activision Blizzard acquisition |OT| Antitrust Simulator [Up: EU Approves] OT

Are you actively trying to start an Euro war bro? >.> Because those two don't go along, especially not in sports lmao ------------------- So it's just the CMA and FCT holding this down huh? Though if the CMA doesn't budge, I'm not sure how Acti/MS can continue to pursue this. No way in hell...

www.resetera.com

They agree with the same things the CMA said about competition harm, but believe MS bullshit 10 year contracts.

So dumb.

 

[Swift_Star]

The CMA has beautifully owned EC and the xbots a few minutes ago:





CMA is not budging, deal remains dead.

 

[FatKaz]

For the first time in a long time i am proud of my country(UK)

Good job CMA for responding swiftly.

FYI EC actually agree on alot of things with the CMA with regard to market definition and that it lessens competition in the cloud if MS pull ABK games away. But what's bizarre is EC have accepted a time limited deal in a nascent market.

Folks are hoping to show CMA is irrational? Mate you better hope CMA don't show how irrational EC is.

 

[Darth Vader]

Ursula Van Palpatine strikes again with her incompetence. Add Cristine "fuck southern countries" Lagarde to that and people in the EU will continue to be assfucked by big corporations. This deal is actually a drop in the pond of how much we've been fucked in the EU. Changing my avatar to Ursula.

 

[Ass of Can Whooping]

Unfortunate decision by the EU. Once the deal is officially dead we'll be coming for you next, cowards

 

[AshHunter216]

For the first time in a long time i am proud of my country(UK)

Good job CMA for responding swiftly.

FYI EC actually agree on alot of things with the CMA with regard to market definition and that it lessens competition in the cloud if MS pull ABK games away. But what's bizarre is EC have accepted a time limited deal in a nascent market.

Folks are hoping to show CMA is irrational? Mate you better hope CMA don't show how irrational EC is.

Your point about both regulators agreeing that cloud gaming is a concern is a very good one. MS would have a hard time convincing the CAT that the cloud gaming implications for isn't something worth being concerned over given that the CMA aren't the only regulator that feels like it's an issue. What makes the appeal even less likely is the fact that the CAT doesn't rule on whether they agree with the CMA's decision, just that their process makes sense and isn't out of left field.

 

[Aidendelaney95]

Ah,so Brexit does have benefits. Huh.

 

[Loy310]

The deal got cleared by the EU.

The CMA responds;



Ultimately the CMA is correct, a free market is better than a market where companies set the terms. Approving regulators are corrupt or don’t care about a truly free market.
The EEA looks very weak and incompetent here.

 

[Darth Vader]

Forgot to add - The same european commission that was told by Microsoft that games would not be pulled from playstation after the Zenimax acquisition now trusts that shit company again. Microsoft who, for multiple times, have promised to course correct shit in the EU and did not.

Nice.

 

[gokuss4]

Brexit was a good thing after all