Brazil The government has just given its approval Microsoft Activision Blizzard Fusion.
Brazilian Competition Authority (CAD), In-spite of this Sony’s the first claim that call of duty franchise is irreplaceable in the shooter genre and that xbox Exclusivity could very well affect console purchases, with translations now allowed without any condition or concession. Given that the Brazilian authority is one of the more scrutinized authorities, this is very interesting.
The Authority noted that it is not their responsibility to protect Sony’s or PlayStation’s position or interests in the market except by authorizing the Agreement. Brazil’s statement also cites his belief that the market would be less competitive even if Microsoft made the Call of Duty or Activision libraries Xbox-exclusive.
With regard to the potential for foreclosure in downstream markets, the analysis pointed out that, despite their relevance and popularity, Activision Blizzard’s games – and the Call of Duty series in particular – would not be essential assets to the activities of Microsoft’s current and potential competitors. . Console and digital game distribution markets (the latter, considering both digital shops and subscription services for many PC and console games). Thus, even if Activision Blizzard’s game catalog following the transaction is exclusive to Microsoft’s ecosystem, SG/CADE believes that such exclusivity would result in a substantial increase in the level of competition in downstream markets. There won’t be a shortage, even if it could translate to a competitive advantage for Microsoft.
It is also important to emphasize that the main objective of CADE’s actions is the protection of competition as a means of promoting the welfare of the Brazilian consumer, not the protection of the exclusive interests of specific competitors.
-The translated version of the statement
CADE’s decision further states that it believes special material has been “urgent” for industry rivalry and a key component in PlayStation and Nintendo leadership position.
Specific games are a benchmark of competition between Microsoft and SIE, although no company has yet developed or achieved a specific game that has decisively shifted the balance in favor of the console. This is because proprietary exclusive games are less popular and represent less revenue than third-party AAA games, which have until then been available on Xbox and PlayStation.
One of the trends in publicly corresponding about the merger was the Brazilian regulator, which also had unprecedented reach. Q&A: Feedback from firms including Sony, Ubisoft, heroineAnd Google, according to the decision Saudi Arabia’s General Authority for Competitionwho said in August that he had “no objection“For the proposed acquisition of the sports business.
Regulators around the world are currently reviewing the proposed $68.7 billion At a time when the gaming sector is becoming more and more consolidated, antitrust concerns have led to acquisitions.
It will be interesting to see how other major authorities will deal with the merger now that Brazil has given its approval.
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