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New report from MLex:
- Microsoft hopes that the remedy package offered to the EC will put pressure on the CMA.
- Microsoft has now formally committed to making Activision's portfolio of games, including Call of Duty, available on rival cloud-gaming platforms.
- "More striking is the absence of any formal commitment to address key concerns raised by rival Sony about the deal's impact on its PlayStation, and Google about the deal's impact on its ChromeOS cloud-first operating system."
- As recently as Feb. 21 (the hearing), the EC still had concerns about those markets.
- Microsoft's offer comes after intense discussions with officials probing the deal, and the market test should be considered a good sign.
- Under the terms of its in-depth review, the commission has until May 22 to rule on the deal, although it will soon need to circulate a draft decision internally and to national authorities.
- The support of Nvidia has been key, according to MLex.
- The extent to which Sony would benefit from the remedy on cloud gaming is unclear. Sony's primary complaint has been that Microsoft would remove Activision Blizzard's games from its PlayStation, or at the very least degrade their performance on the Sony console to drive its users to the Microsoft Xbox. "That appears to have fallen on deaf ears at the EU competition enforcer."
- The offer from MS (to Sony) presumably still remains on the table. So, at some point Sony may say yes. In any case, most probably Sony will first shift its attention to the CMA.
- "No doubt Microsoft will have pointed CMA investigators to the EU regulator's latest conclusions on that point. If Microsoft can get traction there and put a dent in the narrative against the deal, that would be no mean feat — but it may not be enough."
- However, the CMA's last public word on the subject (acceptance of behavioural remedies) still remains: "None of the circumstances in which the CMA would select a behavioural remedy as the primary source of remedial action in a merger investigation ... appears to be present."
Would think in order to pressure the CMA they would have to get EC to approve it first but Idk.
Glad to see EC has seen through Sony's nonsense though, at least one major regulator is working properly.
If they deal with the Cloud SLC via EC then it may encourage CMA to accept the same terms, especially since CMA won't have to be the one monitoring it, that then would only leave the Console SLC which Microsoft is poking dozens of holes in, the SLC in Consoles has very bad maths in it which Microsoft have pointed out which blows apart a large basis of claiming an SLC...CMA will surely know that if that maths mistake isn't fixed it will be sent to CAT and CAT will rule in favour of Microsoft and send it back, at least, I would hope so.
Last edited by Ryuu96 - on 17 March 2023
