Microsoft and Activision Blizzard are both developers and publishers of games for PCs , game consoles and mobile devices as well as distributors of games for PCs . In addition , Microsoft also distributes games for consoles , offers the Xbox gaming console and related services as well a wide range of products and services , including the PC operating system Windows and the cloud computing service Azure .

The Commission ’ s preliminary investigation shows that the transaction may significantly reduce competition on the markets for the distribution of console and PC video games , including multi-game subscription services and / or cloud game streaming services , and for PC operating systems .

In particular , the Commission is concerned that , by acquiring Activision Blizzard , Microsoft may foreclose access to Activision Blizzard ’ s console and PC video games , especially to highprofile and highly successful games ( so-called ‘ AAA ’ games ) such as Call of Duty .

The Commission says the preliminary investigation suggests that Microsoft may have the ability , as well as a potential economic incentive , to engage in foreclosure strategies vis-à-vis Microsoft ’ s rival distributors of console video games , such as preventing these companies from distributing Activision Blizzard ’ s console video games on consoles or degrading the terms and conditions for their use of or access to these video games .

When it comes to multi-game subscription services and / or cloud game streaming services in particular , the Commission is concerned that , by acquiring Activision Blizzard , Microsoft may foreclose access , to the detriment of its rival distributors of console and PC video games that

offer such services , to its own PC and console video games , which are key for the provision of the nascent services of multi-game subscription and cloud game streaming .

Such foreclosure strategies could reduce competition in the markets for the distribution of console and PC video games , leading to higher prices , lower quality and less innovation for console game distributors , which may in turn be passed on to consumers .

Finally , at this stage of the investigation , the Commission has concerns that the proposed acquisition may reduce competition on the market for PC operating systems . In particular , the Commission is concerned that Microsoft may reduce the ability of rival providers of PC operating systems to compete with Microsoft ’ s operating system Windows , by combining Activision Blizzard ’ s games and Microsoft ’ s distribution of games via cloud game streaming to Windows . This would discourage users to buy non-Windows PCs .

The preliminary investigation suggests that Microsoft may have the ability , as well as a potential economic incentive , to engage in such conduct vis-àvis rival providers of PC operating systems .

The Commission will now carry out an in-depth investigation into the effects of the transaction to determine whether its initial competition concerns are confirmed .

The Commission now has until March 23rd

2023 , to take a decision . The opening of an in-depth inquiry does not prejudge the outcome of the investigation .

“ Video games attract billions of users all over the world and are among the fastest growing forms of digital entertainment ,” notes Margrethe Vestager , executive vicepresident in charge on competition policy . “ For years , Microsoft has been a major player across the gaming supply chain . It is acquiring Activision Blizzard , a highly successful producer of gaming content . We must ensure that opportunities remain for future and existing distributors of PC and console video games , as well as for rival suppliers of PC operating systems . The point is to ensure that the gaming ecosystem remains vibrant to the benefit of users in a sector that is evolving at a fast pace . Our in-depth investigation will assess how the deal affects the gaming supply chain .”