Microsoft’s proposed Activision Blizzard takeover faces a lot of scrutiny considering the sheer magnitude of the deal. Now, a report suggests that Microsoft has failed to meet the EU’s deadline for submitting its response to an inquiry and faces a deeper investigation into the proposed merger.
As reported by Politico (thanks, VGC), Microsoft had to submit its response before midnight on October 31, 2022. Politico’s sources revealed that since Microsoft failed to do so, the EU is now looking to probe deeper into the acquisition. The EU has also set a deadline of November 8 for itself to discuss and possibly announce the second round of investigation.
Both the EU and CMA are closely monitoring the situation due to the effect this could have on the games industry and Microsoft's competitors. The EU has even sent a detailed questionnaire to several developers seeking their opinion on the same. It also asked developers about the importance of Call of Duty's exclusivity for Xbox and what could it mean for other companies. On the other hand, the CMA is seeking public opinion on the matter where anyone can offer their perspective on the government's website.
However, the most notable entity to speak up against this deal is Xbox's biggest rival, Sony. The Japanese tech giant has mentioned that the deal could influence console-buying decisions and also casts a shadow of doubt over the future of COD titles on PlayStation. Despite Xbox reiterating that it won't be the case and that COD will also not be on Game Pass for a number of years, Sony's stance in opposition to this deal is clear. Even the CMA doesn't think that Xbox will keep COD non-exclusive.
Undeterred by that, Xbox boss Phil Spencer and Microsoft CEO Satya Nadella seem confident that the deal will go through. Spencer even mentioned that the investigation by EU and CMA is fair, but that might change as it was before the EU was considering a deeper inquiry.