Microsoft’s Acquisition of Activision Blizzard Approved by New Zealand’s Commerce Commission

While Microsoft sent its final submission to the Consumer Markets Authority in the UK regarding its acquisition of Activision Blizzard, another regular has approved the deal. New Zealand’s Commerce Commission announced its approval, noting its focus on “the importance of Activision games (such as Call of Duty, Overwatch and World of Warcraft) to New Zealand gamers.”

It also considered whether “Microsoft would be likely to stop rivals like Sony and Nvidia from offering those games on consoles and cloud platforms.” Commission Chair Dr John Small said it was satisfied with the terms of the acquisition, believing it unlikely to lessen competition in any substantial way.

“While Activision games, in particular Call of Duty, are popular with New Zealand gamers, our enquiries did not find that they are likely to be ‘must have’ to compete with Microsoft in New Zealand.”

Microsoft told VGC, “We appreciate the thoughtful consideration by the New Zealand Commerce Commission of our acquisition of Activision Blizzard and welcome its decision to clear the deal unconditionally. This acquisition will ultimately benefit the gaming industry and gamers, and we will continue to work toward closing the deal.”

It first announced its proposal to acquire Activision Blizzard in January 2022 for $68.7 billion. While several regulators approved, some, like the FTC and CMA, rejected it. There was also significant backlash from Sony, which eventually ended up signing a 10-year deal to have Call of Duty on PlayStation.

Microsoft recently won out against the US Federal Trade Commission, which filed for an injunction to stop the merger. It’s now waiting for a decision from the CMA before deciding on its next recourse. Though a trial was set for July 28th, both parties received two additional months to resolve any issues by the Competition Appeal Tribunal. Stay tuned for updates as usual.