The regulatory body states that it does not have to defend “the particular interests of specific competitors”.
Since Microsoft’s purchase of Activision Blizzard was announced earlier this year, we’ve had a number of comings and goings regarding its possible approval by the different regulators governmental. In August we learned that Saudi Arabia approved the operation, and now it is another important country that joins this position.
We are talking about Brazil, since the Brazilian regulatory body has given the green light to the purchase as we have been able to know in the last hours thanks to a statement that VGC has collected. From the Administrative Council for Economic Defense (CADE) they have assured that they have approved the merger without restrictions.
They affirm that the purchase would not hinder access to competitorsCADE says that, “despite the fact that Microsoft has control of a relevant portion of the market for consoles and digital games, the company would have no incentive to hinder access for publishers competing with Activision Blizzard to their platforms. This would necessarily imply a reduction in the quantity and variety of the catalog of games available on Xbox, making the company’s products and services less attractive to consumers.”
The Brazilian organization directly cites the Call of Duty saga, Sony’s main concern regarding this operation due to the possibility that what is considered one of the most important video game franchises will disappear from its PlayStation consoles: “Despite its relevance and popularity, Activision Blizzard games -and in particular the Call of Duty saga- would not be essential assets in the performance of current and potential competitors in the console and digital gaming markets.
Hint for Sony?
Furthermore, CADE seems to leave a message to Sony without naming it directly in the following part of the statement: “The central objective of CADE’s activities is the protection of competition as a means to promote the well-being of Brazilian consumers. And of course not the defense of the particular interests of specific competitors“, they sentence.
They do not consider Call of Duty as an essential assetFor the rest, in relation to Xbox having in the future exclusivities of different games At Activision Blizzard, the possibility that this could cause consumers to switch from choosing to buy a PlayStation to buying an Xbox entertainment system is of no concern to them, as they do not see “a risk to competition in the console market as a whole”.
The fact that the Economic Defense Administrative Council has given the green light to Microsoft’s purchase of Activision Blizzard is an important advance for the interests of the company, which has seen how in recent months the approval processes have become more complicated despite the efforts of Microsoft itself. For example, the UK regulatory body is one of the most demanding to date, although we will know the final decision early next year.
More about: Activision, Activision Blizzard, Microsoft, Purchase of studies, Brazil and Xbox.