They can, the CMA has access to their Financials. They don’t want to do it.
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Technically yes, but they said it isn’t viable for them and we know it goes against their business model. Point is, their bluff got called, and rightfully so.
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PlayStation is simply afraid of the day and date subscription model
Period
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Seriously, why are we having a debate whether the deal should be approved. If this deal would adversely affect the market and the companies in it, you can be damn sure they would kick a fuss.
But the only one who is really is Sony and it is just weird that the company with the largest share is not getting laughed out of the door.
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That’s great news for Xbox showing how competitive they are in the U.K.
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Old article from 10 days ago regading the response hearing in London: according to the Capitol Forum, “Microsoft is said to have been buoyed by the amount of time the regulator spent discussing the access remedy option. Though the CMA is obliged to consider each remedy it has proffered.”
Approval by the Brussels-based regulator with a formal remedy giving rivals access to popular video games, including Activision’s Call of Duty, would be a reasonable enough outcome given commission decisions in recent complex mergers to accept non-divestiture remedies. Think Google/Fitbit and LSEG/ReYnitiv.
But at this stage of the Microsoft/Activision review, an EC determination to accept Microsoft’s licensing offer and approve the transaction would appear to be premature at best. At worst, such a conclusion could represent an abuse of process.
Microsoft hasn’t yet offered a formal remedy to the commission. If the company does submit an offer, as expected, it must do so by midnight on March 16. The remedy would then be sent for third-party feedback through a market test. Only at that point would the commission’s competition department be able to deYnitively conclude whether the deal should be approved.
Even so, The Capitol Forum is aware of influential voices within the EC that believe the deal should be approved with non-divestiture conditions. That view may well end up being correct, but an important and indispensable part of the EC process must first play out.
Meanwhile, Microsoft last week participated in a “response hearing” in London at the Competition and Markets Authority. The UK watchdog has set out various ways the company could attempt to address misgivings about the Activision merger, including asset divestitures and an access remedy. All these options are said to have been discussed at last week’s meeting, and Microsoft is said to have been buoyed by the amount of time the regulator spent discussing the access remedy option. The CMA, though, is obliged to consider each remedy it has proffered.
Still, the UK authority remains a staunch defender of its position that behavioral remedies should only be accepted in the most exceptional circumstances, putting the Activision deal at significant risk of being blocked.
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I’ve seen some speculate that the developer who mentioned poor discoverability on PS store is probably Mike Rose. I will say that this video made me laugh (although it would be frustrating for small developers).
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Taking “If you’re not first, you’re last” too serious.
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I’d say that MS have probably built their grounds for the CAT appeal with the CMA calculation error. Reading between the lines that’s where they think this is headed.
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I think this is getting approved by the CMA. Theres not a single argument remaining that is legally stable.
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Werd… They have no legs to stand on.
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OR they are merely covering their grounds for CAT appeal and this is not a real indication that the deal is being blocked by the CMA.
You can also look at the Capitol Forum article and think that CMA sounds open to the access remedy solution as well. As a result, it may be more likely to go through.
I know you are very pessimistic about the deal going through only because CMA seemingly won’t think past their own ‘logical’ arguments and budge from their view in the provisional findings. The remedies offering has not been finalized yet. So, it is still not a foregone conclusion yet, especially after all 6 Market Participants’ responses showing support for the deal. You would think that the CMA should realize that the only opposing party is against the deal for self-serving purposes and have not kept up with consistent arguments anyway.
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Well said!
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I would hope the CMA are taking note…I’m not convinced they will. But certainly the position of Sony has weakened considerably this past week.
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That would be putting it lightly.
Sony went from ‘COD will become exclusive to Game Pass and it will never be offered to PS+’ to ‘COD can be on PS+ but not without paying a hefty fee to MS’. Well, no duh…
Also that response from 4J Studios is very relevant wrt to how fairly Microsoft has handled Minecraft on other platforms WITHOUT a legally binding agreement.
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The CMA should also re gonize that Microsoft sat down with Nvidia, who was against the deal and eeached an agreement. Nvidia is now im support of the deal. That shows Microsoft is very willing to work with a competitor and to reach agreements to things that competitors are reasonably concerned about.
A competitor wearing a tin foil hat talking about bugs being injected into their version is no longer someone thats reasonably concerned. Nor is someone that just states they want to block your merger. At that point they are someone looking out for their own interest who is willing to say and do anything. Credibility heads out the window. It is also telling how Sony’s position in regards to the deal has changed over time. They were called out as overstating their position by the CMA already. Its clear they have begun realizing where things are at and that Sony is not acting in good faith.
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I just remembered something funny, there were nutjobs in the other forums claiming that MS buying Zenimax was illegal and that agencies should stop it LOL.
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Anyone else think this was the CMA respondent who mentioned that the deal would help level the playing field and that they make about as much revenue from Xbox as PS because it’s easier for people to find their GAMES? I immediately thought of him when I read through that document. Edit, OK now I see what you wrote, but yeah I think it was him as well.
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Is anyone else having problems getting the Activision filing? The rest downloaded ok for me but not that one. Guess it could just be volume or something. Edit: looks like they pulled the original and uploaded an updated version. Wonder if something wasn’t redacted or something… Here’s the link to the new one.
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