Microsoft Corp. (MSFT.O) received E.U. antitrust permission for its $69 billion acquisition of Activision (ATVI.O) on Monday, which could encourage Chinese and South Korean regulators to follow suit despite a British rejection.
However, the U.S. software giant must still win the largest gaming industry takeover. It can appeal Britain’s Competition & Markets Authority (CMA) ban until May 24. Choosing may take months.
Despite Japan’s March approval, the U.S. Federal Trade Commission’s case against the agreement is pending.
The European Commission confirmed a March Reuters report that Microsoft’s arrangement to license famous Activision games like “Call of Duty” to competing game streaming services made the transaction pro-competitive.
“Practical and effective,” E.U. antitrust chief Margrethe Vestager told reporters.
“Actually they significantly improve the condition for cloud game streaming compared to the present situation, which is why we actually consider them pro-competitive,” she said, countering the U.K. claim that the arrangement will hurt competition in that market.
Since Brexit, the U.K. agency rejected the deal, showing its worldwide regulatory might.
Microsoft has licensed Activision titles to Nvidia (NVDA.O), Nintendo (7974.T), Ukraine’s Boosteroid, and Japan’s Ubitus.
“The European Commission has ordered Microsoft to automatically license popular Activision Blizzard games to competing cloud gaming services. “Millions of consumers worldwide will be able to play these games on any device,” stated Microsoft President Brad Smith.
Microsoft’s shares were unchanged at 1650 GMT, while Activision’s rose 1.3%.
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