Microsoft Corp’s remedy to address EU antitrust concerns over its $69 billion acquisition of Activision Blizzard will focus only on cloud gaming services, without mentioning rival Sony, people familiar with the matter reportedly said on Monday, local time.
Microsoft has been trying to allay the European Commission’s concerns that the deal could reduce competition in gaming consoles and PCs, PC operating systems and cloud gaming streaming services. However, the lack of mention of Sony in the settlement suggests that the European Commission is no longer concerned about competition in the console market.
Microsoft submitted its proposal to the European Commission last week, but the company did not disclose details. Microsoft has offered a 10-year licensing agreement for its cloud gaming service, the sources said.
EU agencies have told competitors and customers to provide feedback by the end of the week and will decide on the deal by May 22, the sources said.
Microsoft’s EU settlement is narrower than the one the company proposed to the U.K. competition agency, which included a licensing deal for cloud gaming services and a 10-year agreement to equalize the content and quality of Activision’s Call of Duty franchise to critics and PlayStation owner Sony.
Other sources with direct knowledge of the deal have revealed that the European Commission is likely to accept such a licensing deal and approve it, but it’s unclear whether the U.K. watchdog will accept this so-called conduct remedy.
