Microsoft, the maker of the popular Xbox gaming console, agreed to concessions to gain the green light from the European Commission, which has traditionally taken an aggressive stance toward U.S. tech mergers and acquisitions. Under the agreement with the European Union, Microsoft will license popular Activision games, including Call of Duty and World of Warcraft, free to other cloud streaming providers.
The European Commission said in a Monday news release that these concessions “fully address” the concerns that the deal would give the tech giant an unfair leg up in the nascent cloud gaming market, which allows players to stream games to their computers or consoles.
Microsoft announced its plans to buy the popular game maker as regulators around the world promised a tougher stance against the growing power of a handful of tech companies. Microsoft has vowed to fight moves from the Federal Trade Commission in the United States and Britain’s competition regulator to block the deal.
Britain’s Competition and Markets Authority said in a tweet that it “stands by its decision,” warning that cloud gaming needs to “continue as a free, competitive market.”
“Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next 10 years,” the regulator said.
The FTC declined to comment.
Both Microsoft and Activision celebrated the E.U.’s green light. Brad Smith, Microsoft’s president, said the concessions the company made to the bloc “will empower millions of consumers worldwide to play these games on any device they choose.”
After business leaders warned that Britain’s decision to block the deal could stifle innovation in the country, Activision CEO Bobby Kotick said the company’s E.U. teams would “grow and prosper given their governments’ firm but pragmatic approach to gaming.”
