Microsoft are officially one step closer to completing their acquisition of Activision Blizzard, as the Competition Commission of South Africa (CCSA) has now approved of the historic deal. This raises the count of countries approving the deal to a grand total of seven: Brazil, Chile, Japan, Saudi Arabia, Serbia, South Africa and (very likely) the United Arab Emirates. There’s still a ways to go, but as of right now, Microsoft is on the right track to close the deal.
The official decision document states that “the Commission found that the proposed transaction is unlikely to result in significant foreclosure concerns as the parties do not have the ability and incentive to foreclose competing game distributors, particularly Sony (PlayStation) and Nintendo (Switch).” Sony had been pushing against the merger, arguing their access to Call of Duty would be at risk if the Activision-owned franchise was under Xbox control. The CCSA dismisses these concerns, stating “the merging parties have made undertakings to continue supplying Call of Duty games to other console manufacturers.”
Whilst Microsoft is certainly pleased to have another national feather in its acquisitioning cap, it still needs approval from some of the biggest competition authorities in the world. Particularly challenging legislative bodies include the EU’s European Commission and the United States’ Federal Trade Commission. Despite these roadblocks, Microsoft still suggests the deal could pass as early as May 22, should things fall into place the way they’d desire.
What do you think of South Africa’s approval of the Microsoft-Activision Blizzard merger? Do you agree it poses no threat to Sony? Let us know in the comments below, and keep your eyes on GameLuster for more breaking gaming news.
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