Brazil Approves Microsoft’s Acquisition of Activision Blizzard

As the investigations surrounding Microsoft’s acquisition of Activision Blizzard carries on in Europe, a significant South American nation declares its approval over the acquisition this Wednesday. Following Saudi Arabia’s decision in August, Brazil’s Administrative Council for Economic Defense (CADE) publicly permitted Microsoft’s controversial acquisition of Activision Blizzard. After publicly filing its decision, the regulatory physique explained that they’d be approving of the acquisition and handing out no restrictions.

Brazil has selected the unrestricted approval of the Xbox + Activision Blizzard acquisition.https://t.co/gYrvUlFRrC pic.twitter.com/iLH91Bza2I

— Klobrille (@klobrille) October 5, 2022

According to the CADE, due to english translations from Resetera user Idas, regardless of Microsoft now proudly owning the rights to among the hottest franchises inside the online game trade, innovation has made it in order that video games don’t should be backed my multimillion greenback franchises to realize success. The CADE additionally famous that gaming consoles just like the Nintendo Switch, which don’t depend on Activision-Blizzard franchises like Call of Duty, proceed to retain a “good sales performance” since launching in 2017.

“Specifically regarding the possibility of closing the game publishing market (upstream), it was found that, despite Microsoft having control of a relevant portion of the console and digital game distribution markets (downstream), the company would not have incentives to make it difficult for publishers competing with Activision Blizzard to access its platforms, as this would necessarily imply a reduction, in quantity and variety, of the catalog of games available in the Xbox ecosystem, making the company’s products and services less attractive to consumers” stated the CADE.

“With regard to the possibility of closing downstream markets , the analysis pointed out that, despite their relevance and popularity, Activision Blizzard games – and in particular the Call of Duty series– would not be essential assets to the performance of Microsoft’s current and potential competitors in the console and digital game distribution markets (considering, in the latter, both digital stores and multiple game subscription services for PC and consoles). Thus, even if the Activision Blizzard game catalog were to become exclusive to the Microsoft ecosystem after the Transaction, SG/Cade considers that such exclusivity would not result in a substantial reduction in the levels of competition in the downstream markets, even if it could translate into a competitive advantage for Microsoft….”

“…In light of all the above, what can be observed is that, despite the fact that Activision Blizzard is the owner of some of the most popular game franchises today, there is no evidence in the file that the company has market power in the publishing segment. of games, or that their titles can be considered indispensable for the commercial success of a given console or digital game distribution platform – especially from the perspective of the Brazilian consumer, which is what is effectively of interest to the present analysis.”

Brazil’s determination sparked a large number of reactions from the group. In spite of disappointments, and pleasure amongst others, a rising sentiment inside the online game group has made many glad that the scenario is enhancing now that the second nation has spoken out in favor of the deal. However, the remainder of the world’s governments have continued to scrutinize the deal, and with the US releasing its verdict by late November this 12 months and the European Commission releasing theirs by Spring 2023, this example doesn’t appear to be going wherever anytime quickly.