
Update: Activision Blizzard has reached out to Pure Xbox with the following statement:
“The South African Competition Commission recommended approval of our merger with Microsoft based on a thorough review of the facts about competition in the gaming industry. We appreciate this additional affirmation from an important global regulator.”
Original story: We've got another development in Microsoft's attempt to acquire Activision Blizzard today, as the South African Competition Commission has recommended that the takeover is approved without conditions.
The Commission's statement explains that the takeover is "unlikely to result in a substantial prevention or lessening of competition in any relevant markets", nor will it "raise any substantial public interest concerns".
"The primary competition concern in this transaction arose from the (vertical) concern that Microsoft may, post-merger, restrict the distribution of Call of Duty to the Microsoft console, Xbox, or make Call of Duty available on terms that exclude or undermine the ability of other console manufacturers to compete."
"The Commission found that the proposed transaction is unlikely to result in significant foreclosure concerns as the parties do not have the ability and incentive to foreclose competing game distributors, particularly Sony (Playstation) and Nintendo (Switch). Furthermore, the merging parties have made undertakings to continue supplying Call of Duty games to other console manufacturers."
That's another country Microsoft can add to the "approved" list, then, and there's another big one potentially coming up over the next few days, as the UK CMA's deadline for deciding on the deal is April 26th.
There's still quite a long way to go before we get to the end of this whole Activision Blizzard saga, but for the time being at least, it seems Microsoft is making good progress towards the finish line. We'll see what happens in a few days!
What do you think the CMA will decide next week? Let us know down in the comments section below.
[source compcom.co.za]
Comments 20
Can't wait to see Sony's tantrum today to that news lol
@ZuneTattooGuy We probably won't, its one of those markets that "doesn't matter" if they okay the deal or not if US/UK/EU don't agree to the purchase it won't matter if these markets okayed it or not..
@abe_hikura
All markets matter, if any of them poo poo it, it could hurt a potential large market. But I like that you think very small picture. Very first world of you
I’m still really worried if the CMA will not approve of the deal even though they’re not concerned about Call of Duty anymore. I just wanna play COD on Switch and Game Pass.
@ZuneTattooGuy It's Sony's laser-focused on trying to exploit the internal politics of the US regulators and the external political aspects of the EU and UK regulators I was referring to, not the importance or merit of this market.
It's one of those markets that doesn't matter TO SONY'S tactic, their strategy at blocking the deal. Like we didn't get a big spectacle out of Sony over Japan, Brazil, Saudi Arabia, Serbia, or Chillie okaying the deal.
@JONOFTHEJONS I think now the CMA has switched from "Exclusive Cod would be bad for PS" to "We're concerned about the developing cloud streaming market" chances have improved a lot.
It's a lot easier for MS to address those concerns.
@abe_hikura Thank goodness. I’m sure this deal has a high chance of being successful.
South Africa has not officially approved the deal. The "competition commission of South africa" has recommended approval to the "competitive tribunal." It will ultimately be up to the Competitive Tribunal to approve the deal. I imagine they will approve it but it is not official yet. Competitive Tribunal wont make it official until late april or may.
@FraserG I just saw an interesting article about the FTC.
Source: Washington Times (likely behind a paywall if you don't get the article from a search engine, so google/bing it up)
The article goes on to point the FTC commissioners actually have the power to do this (overrule their own internal judges.) Why am I bringing it here? Because it is its internal court that the FTC is trying to use to stop the ABK acquisition, and should that judge side with Microsoft, expect them to do the same there. FTC is going to drag this as far as they can.
@Tharsman with Axon getting a 9-0 unanimous decision, I would be very worried if I was the FTC. Microsoft wil just challenge it in Federal Court after that result, is my very limited understanding.
@Kaloudz CMA I believe is no later than 26th, so next week at the latest
@Sakai Yes I expect it to simply be elevated to federal court, but this also likely means more delays. I expect this to go through, but every month that they spend on this further gets in the way of other things Xbox could be pursuing, like, they could had likely been on the bid for Rovio, for instance. We might not care for Rovio, but I'm sure they lament not being on that bid, given how much want to get a foot hold on mobile.
@Tharsman I believe Microsoft have said that once they gain approval from the cma and eu, they will close the deal without the FTC. I believe they said this in administrative court with the FTC.
But if there was any common sence in the world, if the cma and eu approve, the ftc would accept the concessions so we can all move on to a new topic lol.
@Kaloudz and the EU are currently market testing the concessions and will final report in May. So really not too long now
Basically saying that they find NO evidence to suggest that 'IF' MS made Call of Duty 'Exclusive' to their Platform, it would NOT affect Sony or Nintendo and their ability to 'compete'.
Sony and Nintendo both have 'far' more exclusives and therefore the 'loss' of a 3rd Party game and it becoming 'exclusive' would not Suddenly give MS the 'monopoly' to stop Sony or Nintendo from selling Consoles, making their Own games etc to get people into their platforms - hence NO Conditions required...
They end by saying that its all 'redundant' speculation because MS has stated they have no intention to remove CoD and continue releasing 'new' CoD content on those platforms anyway so have absolutely no concerns.
It doesn't matter who 'owns/publishes' CoD really. From a Sony perspective, its still a 3rd Party Publisher releasing their game (like A/B, Ubisoft, EA etc). Even if they publish under Activision after they are owned by MS on Playstation, the money that 'normally' goes to A/B just goes to MS instead - but Sony will still keep getting their cut as Platform holder/retailer on Digital content. They just can't get away with 'BS' taxes (insist they pay more for cross-platform and pay 'fees' for 'lost sales' for every Cross-platform player who didn't play on Playstation - Epic vs Apple) and paying to keep content from MS on CoD (or potentially any future A/B games) again and maybe if Sony don't sign, could find WoW or Diablo V not coming to their Platform (the deal said A/B games as well - of course OW2, D4 etc that are already on PS or would be)
Just wait until Sony try and buy exclusive content in GTA, next thing you'll here is MS owns GTA now... LOL
I want to know how do all the writers at Pure Xbox feel about the deal almost being done? Are you looking forward to not writing about this anymore or has it been a fantastic well of content that will be missed?
@Kaloudz I think they basically send out a few questionnaires to market participants. I don't think it's as complicated as it sounds. But again I am no expert and don't know every last detail. I personally think its a formality that it will be approved by the EU, now it's got this far, but I could be wrong
Can't come soon enough. I'm holding out hope for WoW to get a console port. That will be huge, especially if they can make it crossplay with PC. Even if not, just having something like WoW Classic ported to XSX/XSS would be awesome.
@Moonglow not just a foot , once they got their mobile store up and running with all the acti stuff , chances are sega will also put the Rovio stuff on that store so more money for Microsoft
Hurry up and end already lol. I wanna see the results.
@Moonglow there is no "more than enough" for them, they will go after more once this goes through.
I maybe the wrong the FTC is American correct?
So wrong trying to stop one of their own from the ground up businesses of many years, grow and develop.
I bet no Japanese FTC would stop Sony buying ABK.
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