April 25, 2024

Taylor Daily Press

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Sources say Microsoft’s actions in the EU are only targeting cloud-streaming competitors

Sources say Microsoft’s actions in the EU are only targeting cloud-streaming competitors

Microsoft’s remedies to quell EU antitrust concerns over its $69 billion acquisition of Activision cover only cloud gaming services, people familiar with the matter said Monday, with no Sony competitor mentioned.

The US software giant has sought to address the Commission’s concerns that the deal could limit competition for consoles, PC and PC operating systems and cloud game streaming services. However, the lack of a solution from Sony indicates that the committee is no longer interested in competing in the gaming hardware market.

Microsoft submitted its proposal to the European Commission last week, but has not disclosed the details.

According to sources, Microsoft has offered 10-year licensing deals for cloud gaming services, citing Nvidia, Ukraine-based cloud gaming provider Boosteroid, and Japan’s Ubitus as examples.

The sources said the EU regulator has given competitors and customers until the end of this week to provide feedback before a decision on the deal is made on May 22.

Microsoft’s offer in the EU is more limited than that of the UK competition agency, which includes licensing deals for cloud gaming services, 10 years of equal content and a quality deal for Activision’s Call of Duty franchise to critics and PlayStation owner Sony.

Other people with direct knowledge of the deal told Reuters it was likely that the Commission would accept these licensing agreements and approve the deal, but it was not clear whether the UK watchdog would accept such alleged behavioral measures.