Higher Level Executives From Microsoft, Sony & Others to Meet In a Closed-Door Hearing

In a recent development, higher-ranking representatives from Microsoft, Activision Blizzard, Sony, EA, NVIDIA, and Valve are apparently scheduled to meet on Tuesday, February 21, in a closed-door hearing in Brussels, according to a fresh report from MLex (via Idle Sloth).

The meeting is expected to be based on the gigantic merger of the Microsoft-Activision which is currently facing investigation from regulators all around the world.

Microsoft is anticipated to attend with Xbox CEO Phil Spencer and President Brad Smith, according the MLex story. The CEO of Activision Blizzard, Bobby Kotick, is anticipated to attend the conference as well. In order to voice his opposition to the Activision merger, Jim Ryan, CEO of Sony Interactive Entertainment, will also be present at the meeting. Furthermore participating at the conference will be representatives from Google, NVIDIA, EA, and Valve.

Moreover, according to MLex, the majority of the concerns listed in the EC’s Phase 2 notification from November are reiterated and kept in its Declaration of Objections. The European Games Developer Federation (EGDF), which is expected to be present at the hearing, is reportedly in support of the merger and will also provide special insight into how Microsoft interacts with game creators.

Why This Meeting is Crucial for the Fate of Microsoft-Activision Deal?

Regulators from across the globe have been keeping an eye on the proposed Microsoft-Activision merger since it was announced on January 18th, 2022. Authorities like the Federal Trade Commission (FTC) of the United States and the Competitions and Market Authority (CMA) are pressuring the involved parties to give “provisional remedies” in order to maintain the balance of the gaming ecosystem.

The deal’s main competitor Sony anticipates that Microsoft would restrict Call of Duty to their platform, which would be very detrimental to the gaming industry and players. Jim Ryan, the CEO of PlayStation, is said to have spoken with the EU and CMA about his opposition to the merger.

Furthermore, Google and NVIDIA, two major tech companies, have voiced opposition to Microsoft’s planned acquisition of Activision Blizzard. According to Bloomberg, “Google and Nvidia provided information that backs a key FTC contention,” according to which Microsoft would assert an unfair advantage notably in the fields of cloud computing, subscription services, and mobile gaming.

In the midst of the opposition, Microsoft has also seen hope from competitors. Valve, which was offered the ten-year deal of Call of Duty presence of their platform said the company had no need for a ten-year contract but was delighted to continue working with Microsoft “after” the transaction was completed. Gabe Newell, the company’s CEO appreciated the offer and claimed that the deal would have no effect on the industry’s balance,.

Microsoft must persuade its opponents that the acquisition would not have an impact on the ecosystem. The meeting seems to be being called for this reason, and it is evident that Microsoft must fully commit in order for the arrangement to stand.

If you are interested in learning about the development of the Microsoft-Activision merger, you can read our roundup on the subject here.

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