Brazil has approved the acquisition of Activision Blizzard by Microsoft, claiming that its work “is not to protect specific competitors“; In this way from Xbox they see one less rung on their ladder.
A Brazilian government regulator has been the next to approve the purchase of Activision Blizzard by microsoftthereby rejecting Sony’s arguments and criticism.
Furthermore, this would also have an impact on Jim Ryan’s latest move in flying to Brussels to show his concern to the EU in the Xbox deal by Activision.
But what happened between Sony and Microsoft? This is the summary of the controversy and the crossing of accusations between both companies.
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In August, Saudi Arabia was the first body to approve this purchase, a situation now followed by Brazil. East process published on the official website of the Administrative Council for Economic Defense (CADE) of Brazil, reveals having approved the merger without restrictions.
In doing so, he acknowledges the possibility that Microsoft owning Activision Blizzard can have a negative impact on the playstation business; your biggest customer in 2020.
Particularly if on Xbox they decide to make great sagas like the Call of Duty exclusive to Xbox. But he makes several arguments as to why that shouldn’t stop the deal from going through.
The Activision Blizzard logo and the Xbox logo together as a symbol supported in Brazil
In its conclusion, CADE argues that “despite Microsoft having control of a relevant portion of the market for consoles and digital games, the company would have no incentives to hinder the access of publishers who compete with Activision Blizzard to its 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.“.
Citing Call of Duty specifically, CADE goes on to say that Activision Blizzard games are not required for the game. success of xbox competitors.
This echoes some statements made from Xbox since from Sony are worried about losing Call of Duty after the purchase of Microsoft and they say that the studio does not make “must have” games.
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“Despite their 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.“.
And in a kind of Hint at Sony PlayStationCADE points out that “the central objective of CADE’s activities is the protection of competition as a means to promote the well-being of Brazilian consumers.
And certainly not the defense of the particular interests of specific competitors“, since for months the company has been very interested in these processes.
And although Xbox has Activision Blizzard exclusive games could cause people to switch from PlayStation to Xbox, CADE doesn’t see a “risk to competition in the console market as a whole“.
The process of purchase of Microsoft by Activision Blizzard It is also under review and scrutiny by regulators from the CMA in the UK and is being heavily investigated in Europe and the UK.
While Microsoft presents it to the European Union regulator and launches the website where it explains why the purchase of Activision Blizzard is beneficial for everyone.
Now what Brazil has approved the purchase of Activision Blizzardwhat next market will follow?