European Commission opens in-depth investigation into Activision takeover

The European Commission said it has opened an in-depth investigation to assess the proposed acquisition of Activision Blizzard (ATVI) by Microsoft (MSFT) under the EU Merger Regulation. The Commission is concerned that the proposed acquisition “may reduce competition in the markets for the distribution of console and personal computers video games and for PC operating systems.” The Commission’s preliminary investigation shows that the transaction “may significantly reduce competition on the markets for the distribution of console and PC video games, including multigame subscription services and/or cloud game streaming services, and for PC operating systems.” The Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access to Activision’s console and PC video games, especially to “high-profile and highly successful games” such as “Call of Duty.”