EU Final Approval of 'MS-Blizzard Big Deal' on the 15th

European Union (EU) regulatory authorities are expected to conditionally approve Microsoft's (MS) acquisition of Activision Blizzard, major foreign media reported on the 10th (local time).

According to sources familiar with the matter, the EU Commission is scheduled to approve MS's acquisition of Activision Blizzard next week, with the announcement expected around the 15th, earlier than the initially announced date of the 22nd.

Earlier, foreign media reported in March that MS was likely to receive approval from EU regulators for the Activision Blizzard acquisition by providing the license for the popular game 'Call of Duty' to competitors.

This decision comes just two weeks after the UK competition authorities rejected the MS-Blizzard acquisition deal over concerns that it could hinder competition in the cloud gaming market.

Previously, the UK's Competition and Markets Authority (CMA) rejected the merger approval on the 26th of last month, citing concerns that the merger between the two companies would reduce consumer choice and stifle innovation in the rapidly growing cloud gaming sector.

The UK and EU argued that MS could abuse its market position by exclusively releasing blockbuster Blizzard games on its game subscription service 'Game Pass' and blocking other game companies from entering the market.

In response, MS sought approval from competition authorities by signing 10-year license agreements with competitors such as Nvidia, Boosteroid, and Ubitus, providing its popular games on their gaming platforms.

Earlier, in January last year, MS completed the largest acquisition in the history of the global information technology (IT) industry by acquiring Blizzard for $68.7 billion (approximately 90.8 trillion KRW). As a latecomer in the gaming market, MS pursued aggressive mergers and acquisitions to expand its market share, and by acquiring the gaming giant Blizzard, it rose to stand alongside China's Tencent and Japan's Sony as a major gaming company. This has raised concerns in the market that MS might disrupt fair competition by leveraging its dominance in the PC market.

Even if MS receives final approval from the EU, many hurdles remain. The regulatory stance of the UK and US authorities is stricter. In the US, the Federal Trade Commission (FTC) filed a lawsuit last December to block the merger between the two companies, and the trial has yet to begin. It remains to be seen whether the EU's approval will hinder the US's regulatory efforts to prevent monopolistic structures through competitor mergers and acquisitions.