Xbox + Activision: Here Are The Two Legal Issues That Could Block The Deal

Microsoft has welcomed Activision-Blizzard into the Xbox world, however there are two possible legal hiccups to consider that could blow up the colossal deal tight between the two sides.

If the question was raised at the time of Bethesda’s acquisition, the more wondering how the Antitrust will act in the case of a huge company like Activision that joins Microsoft. The bodies responsible will have to verify in essence that the maneuver put in place by the giant of Redmond does not go to affect in an invasive way the competitors of the video game market, with the risk that a real monopoly will be created. The regulators will have to weigh the question of the possible total exclusivity of Activision games on Xbox, as Janelle Wrigley, director of the antitrust at Thomson Reuters Practical Law, suggests.

“There is nothing wrong with exclusivity in itself. The question is whether getting control over Activision games would give Microsoft the chance to increase prices or otherwise harm consumers because players wouldn’t have a way to go elsewhere.”

It will also be important to check the impact that the acquisition could have on the main genres that populate the video play scene, including shooters, sandboxes and so on. If regulators identify antitrust issues in the agreement, they may propose that certain activities be uncorporated or that certain content not be made exclusive, rather than directly bringing a case.

A second problem is the accusations of harassment of Activision’s female personnel, which are still without an epilogue. According to statements by Jim Speta, professor of Northwestern University Pritzker School of Law, Microsoft may be asked and obliged to handle the intricate situation in person, and this could involve further complications for the purpose of the closure of the According to analyst Daniel Ahmad, Microsoft will have to pay $3 billion to Activision in case the acquisition is blocked.

Leave a Reply

Your email address will not be published.

You May Also Like