Sony, Google Unite? In discussion with EU regulator over Microsoft Activision takeover deal

BASIC POINTS

  • Microsoft has a multi-billion acquisition deal with Activision
  • Activision is behind the hit ‘Call of Duty’ series
  • Sony and Google are against the said acquisition deal

Tech giants Sony and Google are reportedly united against a deal to buy Microsoft’s Activision, with both companies reportedly raising concerns with EU regulators about the multibillion-dollar business.

The latest report from capital markets firm Dealreporter claimed that Sony Interactive Entertainment CEO Jim Ryan visited the EU headquarters on September 8 to express his concerns about Microsoft’s proposed $68.7 billion takeover deal. The executive’s concern is likely over arrangements for future and upcoming titles, specifically, the “Call of Duty” series, which in the past has brought lucrative revenue to Sony’s PlayStation.

If Microsoft signs the acquisition deal with Activision, there is a possibility that the game publisher’s game will be released exclusively on the Xbox game console. Recently, the UK’s Competition and Markets Authority announced that it intended to conduct a second investigation into the takeover deal.

The Activision booth is on display at the E3 2017 Electronic Entertainment Expo in Los Angeles

Sony stated its support for the investigation and noted, “by giving Microsoft control over Activision games like Call of Duty, this deal would have significant negative implications for gamers and the future of the gaming industry.” The Japanese gaming giant also said, “we want to guarantee that PlayStation players continue to have the highest quality gaming experience, and we appreciate the CMA’s focus on protecting players.”

Sony and Activision have a deal for the “Call of Duty” series, and it’s believed to cover the publisher’s latest games “Call of Duty: Modern Warfare II,” “Call of Duty: Warzone 2” and a new game reportedly in development at gaming studio Treyarch, which could arrive sometime in 2024. It is unknown what will happen if Microsoft acquires Activision.

Last month, the CMA noted that Microsoft’s acquisition of Activision could harm competition in cloud gaming, game consoles and subscription services if Microsoft refuses to allow its competitors access to games with the biggest Activision sales.

Search engine giant Google, on the other hand, has reportedly spoken to EU regulators about the acquisition in question. The company is also believed to have raised the matter with CADE, a Brazilian antitrust body.

Unfortunately, Google’s concern about the acquisition is unknown, as its competition with Microsoft has always been in terms of innovation and information technology.

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