The European Commission said Microsoft is offering measures to address competition concerns by allowing consumers to stream titles on any cloud computing platform of their choice.
On Monday, May 15, EU regulators allowed The long-awaited $69 billion acquisition of gaming giant Activision Blizzard Microsoft, The European Commission, which is the executive branch of the European Union, said that Microsoft has offered remedies in the area of cloud gaming which is currently plagued by antitrust concerns. These remedies will allow users to stream Activision games they purchase on any cloud streaming platform.
It’s a major win for tech giant Microsoft after the top competition authority in the UK blocked the deal last month. Regulators around the world have expressed concerns about whether Microsoft’s acquisition of Activision could distort competition in the cloud gaming and console markets.
Some regulators also asked whether Microsoft could take Activision’s games and put them exclusively on its platform. as we know, activism blizzard is behind some of the biggest console and PC games in the world. This includes popular names such as the World of Warcraft and Call of Duty franchises.
The UK Competition and Markets Authority (CMA) said last month that the deal would reduce competition in the nascent cloud gaming market. Furthermore, it was also noted that Microsoft would seek it out. Commercially profitable to have all Activision games exclusively on its platform. However, the CMA stated that the acquisition would not reduce competition in the console market.
As well as regulators, Microsoft has also faced opposition from rivals such as PlayStation game console maker Sony. But in February, Microsoft President Brad Smith met with EU officials to say he would bring Xbox PC games to Nvidia’s cloud gaming service. Nvidia also objected to the acquisition deal. In addition, Microsoft also signed a 10-year deal with Nintendo to bring Call of Duty to its platform.
Microsoft offers the cure for cloud gaming
Currently, Microsoft’s Xbox lags far behind other competitors such as Sony’s PlayStation 5 as well as the Nintendo Switch. However, the American technology giant is putting a big focus on the so-called cloud gaming market. A large portion of the EU’s recent investigation has centered around cloud gaming.
Cloud gaming allows users to stream games directly from servers which removes the need for expensive dedicated hardware such as consoles. Users can play this game on all existing devices such as smartphones, TVs and laptops.
However, for players to be successful in the cloud computing field, they need to offer a large catalog of games in which users can access them quickly from a subscription service. Microsoft is looking to capture this market with the acquisition of Activision Blizzard.
The European Commission said Microsoft is offering remedies to address competition concerns. Consumers who have purchased Activision games will be able to stream the titles on any cloud computing platform of their choice.
Additionally, Microsoft will also be able to grant royalty-free licenses to the cloud gaming platform to stream Activision games.
Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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