Microsoft's R1.2tn Activision Blizzard acquisition gets green light from SA

The buyout was announced in January 2022. The acquisition will reportedly make Microsoft the world’s third-largest gaming company by revenue if complete.

In a press statement, the Competition Commission said the following:

"The primary competition concern in this transaction arose from the (vertical) concern that Microsoft may, post-merger, restrict the distribution of Call of Duty to the Microsoft console, Xbox, or make Call of Duty available on terms that exclude or undermine the ability of other console manufacturers to compete.

Microsoft to buy gaming company Activision Blizzard for R1tn

19 Jan 2022

"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). Furthermore, the merging parties have made undertakings to continue supplying Call of Duty games to other console manufacturers.

"Therefore, the Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any substantial public interest concerns."