EU Regulators scrutinise Microsoft’s move to sell Non-EU cloud rights to Ubisoft

Microsoft’s UK solution for its Activision bid under scrutiny. EU regulators assessing impact of its cloud streaming rights sale to Ubisoft.

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The EU competition regulators will analyse the repercussions of Microsoft’s solution in the UK, where it intends to sell its non-EU cloud streaming rights to Ubisoft Entertainment. This move is aimed at gaining approval for its acquisition of Activision Blizzard.

The European Commission will evaluate whether this action will influence the commitments Microsoft made to the Commission. A representative from the European Union executive conveyed this by stating that they are closely monitoring the situation in the UK and its potential impact on the commitments previously accepted by the Commission.

Earlier in May, the EU competition authority had granted approval for the Microsoft-Activision deal on the condition that Microsoft would license popular Activision games to competing game streaming platforms for a decade.

Why does this matter?

This matters because it highlights the complex dynamics of antitrust regulations in the tech and gaming industries. Microsoft’s move to sell non-EU cloud streaming rights to Ubisoft as part of its Activision bid reflects its strategy to gain UK approval. However, this action could potentially impact the concessions Microsoft made to the European Commission earlier. It underscores the interconnectedness of global business decisions, regulatory concerns, and the evolving landscape of competition in the gaming sector, which can have far-reaching implications for both companies and consumers.