Game-Changing Deal: Microsoft's Acquisition of Activision Blizzard Approved by Yet Another Country!

Highlights

Microsoft's Activision Blizzard acquisition has been approved by New Zealand's competition regulatory authority, providing a boost to Microsoft's efforts to close the deal.

The acquisition faced initial opposition from regulatory bodies such as the FTC, CMA, and the EU due to concerns about decreased competition in the gaming industry. Despite vocal opposition from Sony, one of Microsoft's main competitors, they eventually reached a 10-year agreement to ensure that Call of Duty remains available on the PlayStation platform following Microsoft's legal triumph.

Microsoft has received approval from New Zealand's competition regulatory authority for its acquisition of Activision Blizzard. In January 2022, Microsoft announced its plans to acquire Activision, and after facing opposition from various regulatory bodies, including the FTC, CMA, and the EU, the acquisition was recently given the green light. The regulatory authorities conducted their own investigations into concerns of reduced competition in the gaming industry. However, with the approval from the EU, the momentum has shifted in Microsoft's favor, and even the FTC is reportedly seeking a settlement with the tech giant. The UK's CMA is the only remaining authority yet to make a decision, as it initially blocked the deal. The recent approval from another country further boosts Microsoft's acquisition.

In a statement to Press Start, Commission Chair Dr. John Small stated that the Microsoft-Activision acquisition would not lead to reduced competition in the gaming market of New Zealand. They acknowledged the significance of franchises like Call of Duty for New Zealand gamers but did not consider them essential for competing against Microsoft. Following the approval, Brad Smith, representing Microsoft, tweeted that the acquisition has been approved in a total of 41 countries and assured efforts to finalize the deal.

Sony, a major competitor of Microsoft, took a strong stance against the acquisition and reportedly engaged with regulators to oppose the deal. Despite Microsoft acknowledging that keeping Call of Duty as an Xbox exclusive was not a wise business decision, Sony rejected all offers to maintain the game on PlayStation. However, after the court favored Microsoft in their legal dispute with the FTC, Sony entered a 10-year agreement with Microsoft to continue offering Call of Duty on PlayStation.

The UK is currently in negotiations to reach a settlement and is seeking additional input on the Microsoft-Activision deal before making a final decision. Furthermore, an agreement has been reached between Microsoft and Activision to extend the deadline for completing the deal beyond July 18, 2023.