The licenses “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose,” Microsoft President Brad Smith said in a statement. The commission approved the deal after accepting Microsoft’s offer to modify its licensing agreements to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years. Cloud gaming frees players from buying expensive consoles and gaming computers by allowing them to stream games they own to tablets, phones and other devices, typically through a cloud platform that may charge a fee. The emerging cloud gaming market received closer scrutiny from Brussels. Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead.įollowing its review, the European Commission dismissed the possibility that Microsoft would cut off its games from PlayStation, saying that excluding the most popular gaming console would put a big dent in its profits. The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft.įierce opposition has been driven by rival Sony, which makes the PlayStation gaming system. The commission's approval “has removed one potential major roadblock for this deal” but “it doesn’t necessarily mean they’re in a stronger position” to overturn the U.K.'s rejection, said Liam Deane, a game industry analyst for tech research and advisory firm Omdia. Despite the deal being positively billed, she says: "It is not clear whether this deal will be good for merchants or the real-time payments market."įull article Global Competition Review ( subscription only).The acquisition, sweetened by Microsoft's promises to automatically license Activision games to cloud gaming platforms, “would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust watchdog. "The acquisition seems to be a significant move in light of Mastercard’s other acquisitions in this area” and “part of the company’s move into the real-time payments world”. Speaking to GCR Journalist Emily Craig, London Partner Wessen Jazrawi said: The acquisition will be dependent on the usual regulatory clearances and the competition authorities have been notified and are likely to review its impact on competition. The deal relates to the majority of Nets’ corporate services business, including its clearing, payment services and electronic billing solutions. This followed several other transactions earlier this year and signifies a move into a further diversification of its payment business and an increased focus on the use of technology as part of its payment offering.ĭenmark-based Nets is present in 20 European countries and is used by over 400,000 merchants and 240 banks. On 6th August, Mastercard announced the $3.2 billion acquisition of Nets, a real-time payment infrastructure - its largest acquisition to date. Mastercard’s purchase of Nets will lead to antitrust scrutiny
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