Microsoft-Activision Deal Approved Unconditionally in South Africa (Update)

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In yet another win for Microsoft, the Competition Commission of South Africa has unconditionally greenlit the Microsoft-Activision deal. The regulator has found that the “proposed transaction is unlikely to result in significant foreclosure concerns,” and that the deal “does not raise any substantial public interest concerns.”

Since Microsoft first announced its intention to acquire Activision Blizzard, multiple markets across the globe have been scrutinizing the particulars of the transaction. Despite aggressive opposition from Sony about the Redmond corporation’s alleged ambitions to foreclose the former out of Call of Duty and other Activision Blizzard IPs, the acquisition has slowly been receiving approval in several countries.

As one of the largest markets in the African continent, South Africa and its regulators have also been reviewing the anticompetitive potential of the deal. In its 11th April meeting that has been detailed to the world today, the Competition Commission of South Africa has unconditionally approved the deal.

Shooting down Sony’s allegation that Microsoft seeks to foreclose it out of Activision Blizzard business, the watchdog has, like the CMA, found that the acquiring body simply does not have the ability nor the incentive to undercut competitors through engaging in foreclosing strategies with Call of Duty, and furthermore, its commitments to continue supplying Call of Duty games to competitors are worth taking into account.

Elsewhere, the UK CMA and US FTC as well as EU and Chinese regulators are still reviewing the acquisition. Stay tuned here at MP1st for all upcoming news and announcements about the Microsoft-Activision deal.

Source: The Competition Commission of South Africa

Update: Activision Blizzard has issued the following statement in response to the decision:

The South African Competition Commission recommended approval of our merger with Microsoft based on a thorough review of the facts about competition in the gaming industry. We appreciate this additional affirmation from an important global regulator.

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