The EU might have to re-examine Microsoft’s deal
The impact of the proposed merger on cloud game streaming in the UK: Microsoft vs. CMA and the EU Competition and Markets Authority
“To address the concerns about the impact of the proposed acquisition on cloud game streaming raised by the UK Competition and Markets Authority, we are restructuring the transaction to acquire a narrower set of rights,” says Microsoft president Brad Smith. “This includes executing an agreement effective at the closing of our merger that transfers the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment SA, a leading global game publisher. The rights will always be there.
“The Commission is carefully assessing whether the developments in the UK require another notification to the Commission,” says European Commission spokesperson Arianna Podesta in a statement to The Verge.
Another notification to the EU could signal a further review of a deal that regulators at the European Commission cleared earlier this year. EU consumers have a license to stream all games from the developer’s website, and can choose their own cloud game streaming services, but they won’t be able to play any new games until the EU’s approval is granted. Cloud providers will also be offered a free license to stream these games in EU markets.
The Competition and Markets Authority (CMA) opened a new phase 1 investigation into the restructured deal, which they are already treating as a new deal. The European Commission will need to refresh its notification for the deal if Microsoft doesn’t.
The Impact of the Ubisoft+ Multi-Access Agreement on Competition and the Future of Games from Violation of the UMa-Ultra Access Agreement
In addition, there will also be games fromActivision on the new version of the Ubisoft Plus Multi Access subscription.
The reworked deal will be assessed and a decision delivered by the October 18th deadline. This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments,” says Sarah Cardell, chief executive of the CMA. Our goal has not changed and the cloud gaming market will benefit from open and effective competition driving innovation and choice after a future decision on this new deal.
