While the UK CMA recently blocked the Activision Blizzard merger, the European Commission will reportedly choose to approve it next week.
This is according to Reuters, which says that the acquisition is expected to clear due to the fact that Microsoft agreed to licensing deals with rivals in the cloud streaming market. These include Nvidia, Boosteroid, Ubitus, and more. It also plans to bring its games to more markets such as Valve's Steam storefront and Nintendo, all in a bid to help ease fears of the deal hindering competition.
The Commission has set a deadline of May 22 for its decision, though it's expected to make the announcement on May 15. If approved, it will join Japan, Ukraine, South Africa, Chile, Serbia, Saudi Arabia, and Brazil. That still leaves the UK, however, which Microsoft and Activision are working to change.
The deal was blocked due to fears that Microsoft would monopolise cloud gaming, and the CMA even revealed that its normal practice "would be to prevent a future merger between the Parties for the next ten years, absent a change of circumstances". The change could involve Sony expanding into the cloud, but in the meantime, CMA says that the only solution right now is to scrap the merger. If this is the route Microsoft takes, it will owe Activision a $3 billion "breakup fee", which is no doubt part of the reason why it's standing its ground.
Activision said the CMA's decision was a "disservice to UK citizens". In the same statement, given by CCO Lulu Cheng Meservey, she stated that Activision and Microsoft will work "to reverse it on appeal", adding that UK citizens "face increasingly dire economic prospects" as part of its defence. She argued that the merger would bolster the UK's economy. This didn't go down well as expected, as from the outside, it simply looked like a billion-dollar company trying to leverage the Cost of Living Crisis to purchase another billion-dollar company.
While many argue that it's a good thing the deal was blocked, as two giant gaming corporations merging only makes the industry smaller and less competitive, EA CEO Andrew Wilson said that he remains "indifferent", while gamers are unsurprisingly angry.
Xbox fans are flooding the CMA's replies on social media, spamming messages in protest of its decision to block the merger. One commenter said, "Glad you're looking for new staff. The people working there at the moment are clearly not up to it after handing a huge win to Sony to keep dominating the console market".
At the end of the day, these are corporations, and handing your 'allegiance' to either side is like picking a fight with someone who prefers Burger King to Mcdonald's. It means nothing, you look silly, and both still make millions. Regardless, the situation is still unfolding and we'll be hearing about this merger for months to come, with next week being another major step in getting it passed.