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EU approves acquisition of Activision Blizzard by Microsoft, blocked by the United Kingdom

The European Commission approved this Monday (15) the acquisition of American video game giant Activision Blizzard by Microsoft, which will pay 69 billion dollars (339,6 billion reais), three weeks after a British veto raised uncertainty about the purchase.

The EU's executive body has made it a condition that Microsoft respect measures to guarantee competition in this online gaming market, according to a statement from the Commission.

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These commitments “fully resolve the competition concerns raised by the Commission,” the statement said.

A Microsoft, which already owns the Xbox, began more than a year ago the acquisition of Activision Blizzard, manufacturer of iconic games such as “Call of Duty”, “World of Warcraft” and “Candy Crush.”

If the operation is completed, the Microsoft will become the third largest video game company by revenue, behind Tencent and Japan's Sony, maker of the PlayStation.

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The European Commission, which oversees the application of competition regulations throughout the European bloc, began an analysis of this acquisition in November.

However, despite the Commission's green light, the future of the acquisition remains uncertain.

The British Competition and Markets Authority (CMA) announced on April 26 its decision to block the acquisition, arguing that it would affect competition in the sector.

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However, the Microsoft appealed. “This decision reflects a misunderstanding of this market and how cloud technology works,” declared the group.

The green light from Brussels should give you strong arguments to challenge the CMA's decision before the Competition Appeal Tribunal (CAT) in the UK.

“If the Microsoft If it fails or fails before the CAT, it will not be able to proceed with the purchase, even if the European Commission approves it”, explained Anne Witt, specialist in competition law at EDHEC (France).

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“Unless the Microsoft decide to abandon the British market, but this seems unlikely”, he added.

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