Microsoft Heads to Brussels for European Commission Merger Hearing

Microsoft is scheduled to attend a closed-door merger hearing with the European Commission in Brussels on February 21, 2023, to address antitrust concerns regarding its proposed $69 billion acquisition of Activision Blizzard. This hearing follows the issuance of a Statement of Objections by the European Union, a preliminary antitrust ruling that grants Microsoft access to the case file and the opportunity to defend the merger before commission officials, member state representatives, and interested third parties, including Sony.

The proceedings function similarly to a trial, where the European Commission evaluates arguments before issuing a recommendation for either unconditional approval, conditional approval, or rejection. While no immediate decision is expected, the outcome in Brussels is considered pivotal, as any remedies or concessions negotiated with the European Commission could influence regulatory proceedings in other jurisdictions, such as the United Kingdom’s Competition and Markets Authority and the United States’ Federal Trade Commission.

To mitigate competition concerns, particularly regarding the future availability of major titles like Call of Duty, Microsoft has already secured 10-year licensing agreements with platforms such as Nintendo and Steam. Despite these efforts, the company continues to face significant opposition, most notably from Sony, which has reportedly declined similar overtures. Microsoft maintains that the acquisition is intended to expand gaming access to a broader audience, and the company remains engaged in ongoing negotiations to resolve marketplace concerns raised by regulators.