EU approves Microsoft's acquisition of Activision following UK’s veto

The potential acquisition is set to become the largest deal in the gaming industry to date, yet it has caused a division among regulators worldwide.

The Competition and Markets Authority (CMA) prevented Microsoft’s proposed purchase of Activision over concerns the deal would alter the future of the fast-growing Cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come.

The final decision to prevent the deal came after Microsoft’s proposed solution failed to effectively address the concerns in the Cloud gaming sector, outlined in the CMA provisional findings published in February.

However, the European Commission (EC) said Microsoft has effectively addressed the competition concerns raised by them. They said that Microsoft's commitment to offering a 10-year free licensing deals would ensure that European consumers and Cloud game streaming services will have access to Activision's PC and console games, thereby ensuring fair competition in the market.

A statement released by the EU competition watchdog said: "The commitments fully address the competition concerns identified by the Commission and represent a significant improvement for Cloud gaming as compared to the current situation."

An in-depth market investigation indicated that Microsoft "would not be able to harm rival consoles and rival multi-game subscription services".

Cloud game streaming service providers "gave positive feedback and showed interest in the licences", with some having already entered into agreements with Microsoft based on their proposals.

But for the Microsoft and Activision deal to be finalised, both companies require approval from regulatory bodies in the United Kingdom, European Union, and the United States.

In December, the US Federal Trade Commission (FTC) filed a lawsuit to impede the deal, and it is unlikely that a judge's ruling will be issued before the end of the year.