South Africa Gives Green Light To Microsoft-Activision Blizzard Merger

Microsoft Corp.'s MSFT bid to acquire Activision Blizzard Inc ATVI has taken a significant step forward as the Competition Commission of South Africa (CCSA) has given its approval for the deal. As per Insider Gaming, the announcement was made on Monday during the commission's regular meeting results.

The CCSA had investigated the acquisition, which raised concerns that the popular game franchise Call of Duty may become exclusive to Xbox, thereby restricting access to players on other platforms. Additionally, the commission was worried that competing platforms may be undermined in future titles from Activision Blizzard.

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However, the CCSA ultimately decided Microsoft's acquisition of Activision Blizzard would not result in any substantial lessening of competition in the relevant markets. As a result, the deal was given the green light.

“The Commission found that the proposed transaction is unlikely to result in significant foreclosure concerns as the parties do not have the ability and incentive to foreclose competing game distributors, particularly Sony Group Corp SONY (Playstation) and Nintendo ADR NTDOY (Switch). Furthermore, the merging parties have made undertakings to continue supplying Call of Duty games to other console manufacturers," the statement said.

“Therefore, the Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any substantial public interest concerns," the statement continued.

Microsoft's acquisition of Activision Blizzard has now been approved by six different regulatory bodies. It is still awaiting approval in several other regions, including the U.S., the U.K., and the European Union.

In a statement to GamesIndustry.biz, Activision Blizzard CEO Bobby Kotick said: "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."

The proposed $68.7 billion acquisition was first announced in January 2022 and has since undergone a lengthy review process by various regulatory bodies worldwide. If approved, the acquisition would give Microsoft access to popular game franchises such as Call of Duty, World of Warcraft and Candy Crush, among others, significantly bolstering its position in the gaming industry.

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