HomeActivision and Xbox, new victory for Microsoft: Chilean antitrust approves the acquisition

Activision and Xbox, new victory for Microsoft: Chilean antitrust approves the acquisition

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When the US battle for the acquisition of Activision was overturned by the FTC, and if the Redmond company were not able to recover, the documents would provide an apologetic explanation of the claims, which he had to approve of the agreement.

The Chilean Commission for Fiscalia Nacional Economica in fact has approved Phase 1 of the operation implemented by Microsoft in order to acquire control of Activision, Blizzard and King. The Chilean government agency cannot ignore its decision to applaud this deal for about $7 billion. It does take into account the merits of the criticism made by those who want to see the agreement won’t go through.

Certainly, the Commission of Chilean FNE believes that it can exclude that the deal between Microsoft Corporation and Activision Blizzard could significantly reduce competition. The two companies have several different duties in the same market: development, publishing and distribution of video games. They’re on multiple levels and cross-platform, on both Xbox and on service such as Game Pass, therefore their activities overlap both horizontally and vertically.

The results of the Chilean antitrust investigation show that the video game market is very dynamic and does have a large number of competitors. We exclude the possibility that Microsoft may discontinue the application or service if it doesn’t have the same functionality. Activision faces competition from various players including Electronic Arts, Take Two, Ubisoft and Epic Games, Sony and Nintendo. In such a country, the subject of Duty of Latin America is higher than in other regions of the world.

The Chilean FNE believe it could also outlaw disruptions to the current hierarchies of the most influential companies in the video game industry, due to the limited number of consumers who prefer to switch consoles to activision games if they fail to enforce the blocking strategy, a survey of the Chilean consumers found. We also exclude all any disruption of the gaming industry due to the release of Activision Blizzard games into the Game Pass catalog, since Activision games have far less relevance to consumers, and industry offer highly differentiated products and services that entrust the dynamism of both consoles and PCs to the exceptional strength of the market – such as the leadership position held by Steam.

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