By Foo Yun Chee

BRUSSELS (Reuters) – Microsoft (NASDAQ:) has thrown the gauntlet down over antitrust criticisms, saying on Tuesday it is able to supply rivals licensing offers in alternate for regulatory approval of its $69 billion deal to buy online game writer Activision, however it will to not promote the latter’s profitable “Name of Obligation” franchise.

WHAT IS THE ACTIVISION DEAL?

Microsoft introduced the Activision bid in January final 12 months, its largest ever, to spice up its firepower within the booming videogaming market and tackle leaders Tencent and Sony (NYSE:), and lay the bottom for its funding in metaverse, digital areas that are made extra lifelike by way of digital actuality (VR) or augmented actuality (AR).

WHAT DO ANTITRUST REGULATORS SAY?

In December, the U.S. Federal Commerce Fee (FTC) requested a decide to dam the deal, saying it will give Microsoft’s Xbox unique entry to Activision video games and omit Sony’s Ps and Nintendo consoles.

The UK competitors company CMA has recommended divesting Name of Obligation to handle its issues whereas the European Fee has warned Microsoft concerning the attainable anti-competitive influence of the deal.

WHO ARE THE CRITICS AND FANS OF THE DEAL?

Market chief Sony needs the deal to be blocked. A bunch of 10 avid gamers in america has filed a non-public client antitrust lawsuit over the deal.

The European Video games Growth Federation, with greater than 2,500 sport studios in 22 European international locations, and the UNI World Union again the acquisition.

WHAT HAS MICROSOFT PRESIDENT SAID AND OFFERED?

Microsoft President Brad Smith mentioned he does not assume “it’s possible or practical to assume that one sport or one slice of this firm (Activision) might be carved out and separated from the remaining” and that he does not “see a viable path to promote the Activision studio for the standard of the sport to another person.”

Smith mentioned the CMA has a option to both kill the deal and cement Sony’s 80% market share in Europe or clear it with behavioural treatments such because the licensing offers with Nintendo and Nvidia (NASDAQ:) that may deliver Name of Obligation to 150 extra million folks.

WHAT ARE THE NINTENDO AND NVIDIA LICENSING DEALS?

Each firms have signed 10-year licensing offers that may deliver Name of Obligation to their gaming platforms however these are conditional on the Activision deal being permitted.

WILL MICROSOFT’S TACTIC WORK?

Behavioral treatments like licensing offers are a tough promote for the CMA which flexed its muscle groups in 2021 when it ordered Fb (NASDAQ:) proprietor Meta to promote animated-images platform Giphy after the deal had been accomplished.

The European Fee could possibly be extra open to such treatments if they’ll allay their issues, however it’s nonetheless too early to inform.

WHO HAS GIVEN THE GREEN LIGHT SO FAR?

Brazil, Chile, Serbia and Saudi Arabia have given unconditional approval.

WHAT NEXT?

The EU antitrust enforcer’s resolution is due by April 11 however the deadline might be prolonged relying on when treatments are supplied.

The CMA has given Microsoft till 1700 GMT Feb. 22 to touch upon attainable treatments, with a response listening to attainable by early March, closing submissions and responses in March and April 26 for a closing report.

Microsoft’s Smith mentioned the corporate would battle the FTC’s request to dam the deal.