Xbox's Activision and Blizzard merger creates formal antitrust warning from EU
n another potential blow to Xbox's Activision Blizzard merger, the European Union has reportedly hit Microsoft with a formal antitrust warning as it tries to get approval on its nascent $69 billion deal.
Politico reports that EU representatives sent Microsoft a statement of objections laying out why the body feels the deal may be problematic for the games industry. The statement was not released, but the EU has previously contended that Microsoft might be "incentivized" to block access to Call of Duty in the future.
In a statement to Politico, a Microsoft spokesperson said Xbox is still committed to "finding a path forward for the deal."
"We are listening carefully to the European Commission's concerns and are confident we can address them," the spokesperson said.
Asked in an earlier interview whether he was more confident than a year ago that the deal would get done, Xbox CEO Phil Spencer said he has "more knowledge" about working with different regulatory boards than before, making him "more confident now than I was a year ago, simply based on the information I have and the discussions that we've been having."
"So my confidence remains high," Spencer told IGN. "We're actively working with the regulatory boards around the world that need to approve for this, and it's been a learning experience for me. A lot of time spent, a lot of travel, a lot of conversations, but they're conversations where I get to talk about our industry and the work that we do and why we do it. I think the more regulators are informed about what gaming is, how the business runs, who the players are, and what our aspiration is as Team Xbox is just a good thing for the industry itself."
Despite that, Xbox's deal has come under intense scrutiny in the US, UK, and EU, with Sony contending that the merger would create a games industry monopoly. It has led to an unusually contentious war of words between the two platform holders as they seek to sway regulators.
In December, the Federal Trade Commission (FTC) sued to block the acquisition, with a trial set later for this year.
Both Spencer and Activision Blizzard CEO Bobby Kotick continue to express confidence in the deal closing, with Kotick writing in an internal memo that two companies "believe these arguments will win despite a regulatory environment focused on ideaology and misconceptions about the tech industry."
For now, Xbox's merger remains very much in doubt. And if it does go through, it won't be without a fight.
ign.com
