South Africa gives greenlight for Microsoft`s acquisition of Activision Blizzard

The South African Competition Commission has approved Microsoft’s acquisition of video game platform Activision Blizzard for almost $70 billion, which would mark Microsoft’s biggest acquisition. The Commission found that there were no significant foreclosure concerns as Microsoft and Activision do not have the ability and incentive to exclude competing game distributors.

 Body Part, Finger, Hand, Person, Adult, Female, Woman, Camera, Electronics, Phone, Mobile Phone

The South African Competition Commission has approved Microsoft’s acquisition of video game platform Activision Blizzard for almost $70 billion, which would mark Microsoft’s biggest acquisition. The Commission found that there were no significant foreclosure concerns as Microsoft and Activision do not have the ability and incentive to exclude competing game distributors. The merging parties have also signed undertakings to continue supplying Call of Duty games to other console manufacturers.

South Africa represents a significant win for the blockbuster deal as it is Africa’s biggest gaming market. Microsoft still needs approval from competition regulators around the world to close the deal, which was initially announced in January 2022. Amid concerns about its effect on competition in the industry the U.S. Federal Trade Commission has said it will attempt to block the deal legally, while the UK’s Competition and Markets Authority has also expressed skepticism.