Brazil approves Microsoft / Activision Blizzard merger and throws shade at Sony
Remember that ongoing merger deal between Microsoft and Activision Blizzard? Of course you do. According to VGC, Brazil’s Administrative Council for Economic Defense (CADE), which was tasked with reviewing the merger’s effect on competition within the country, has officially approved the merger with no restrictions.
Although the organization was not only looking at the complaints that Sony had been throwing around, they made specific mention of Sony in the announcement.
“Exclusive content was, most likely, one of the main factors responsible for positioning the PlayStation as a leader in the world console market for more than two decades, a leadership that continues to this day.
With the acquisition of a publisher such as Activision Blizzard, and considering the (theoretical) risk of the company’s content becoming exclusive to Xbox, it is likely that the eventual conclusion of the transaction will give Microsoft a considerable competitive advantage in the console sector.”
Basically saying that Sony had used heavily exclusives as part of their business dealings so they shouldn’t whine about someone else doing it.
“Even so, CADE does not see that such an advantage represents a risk of closing this market for current competitors. As is already seen, Nintendo does not currently rely on any content from Activision Blizzard to compete in the market.”
And now CADE basically tells them to look to Nintendo who is doing fine and is not whining about the Microsoft / Activision Blizzard merger.
The report further stated that CADE was focused on the well-being of the Brazilian consumers, “not the defense of the particular interests of specific competitors.”
Burn!
Saudi Arabia has already approved the merger. The US Federal Trade Commission (the biggest hurdle for the US based companies) has not ruled on it yet and is expected to have a decision by late November while the UK has set a deadline of March 1st, 2023. We’re assuming that the UK will rule earlier once the US FTC has made their decision.
