Microsoft will be stepping up again to protect its intended deal with ActivisionBlizzard on the European stage. The drawn-out process of attempting to buy Activision has arrived at its latest stage with this brand-new development, and Microsoft will again have to defend its position.
Many countries have opposed the potential deal since Microsoft announced it on January 18, 2022. A few have already approved the Activision acquisition since then, such as Chile, Serbia, Brazil and Saudi Arabia but EU officials remain unconvinced. Last week Microsoft received a statement of objections from the EU, the content of which is not known to the public. It's known that the European Commission worries the deal could have anticompetitive effects when it comes to Sony, specifically in connection with Call of Duty. However, this issue is questionable considering Microsoft has offered Sony a deal to release Call of Duty on the PlayStation on the same date as the Xbox release for the next 10 years.
Reuters learned from a Microsoft spokesperson that the hearing will be held on February 21. Prior to the date, an EU officer will be making the decision on whether interested third parties, such as Sony, will be invited. Microsoft will then have the chance to address all the concerns the EU has collected in its statement. It's also possible Microsoft might address again Sony CEO, Jim Ryan's, potentially misleading statements regarding Call of Duty. Sony has categorized the loss of Call of Duty on PlayStation as "irreplaceable," as statistics proved that a high number of their sales come down to the FPS franchise. But if Microsoft is willing to work with Sony to alleviate such a loss then it's possible their opposition has a much weaker leg to stand on.
Microsoft has offered the same deal to Nintendo when it comes to the release of Call of Duty for the next 10 years, and the Japanese company has accepted it. However, when it comes to Sony, it seems even that kind of contract will not be enough. Therefore, if Sony is invited to the EU hearing, then it's expected tensions will be riding high between it and Microsoft.
Originally, when the $69 billion deal was announced, Microsoft stated its intention that by buying Activision it hopes to increase its chances of competing with market leaders Tencent and Sony. Tencent owns shares in a wide range of international gaming companies such as Riot Games, Epic Games and Ubisoft. Considering their lack of participation in these hearings means it feels a lot less threatened by the deal than Sony is.