Microsoft's EU remedies target only cloud streaming rivals

Microsoft’s remedies to address EU antitrust concerns focus only on cloud gaming services, claimed sources

March 21, 2023 10:45 am | Updated 10:45 am IST - BRUSSELS

File photo of the Microsoft logo near its building

File photo of the Microsoft logo near its building | Photo Credit: AP

Microsoft Corp.'s remedies to address European Union antitrust concerns over its $69 billion acquisition of Activision focus only on cloud gaming services, with no mention of rival Sony, people familiar with the matter said on Monday.

The U.S. software giant has been trying to allay the Commission's concerns that the deal may reduce competition for console and personal computers, PC operating systems and cloud game streaming services. However, the absence of a Sony solution suggests the Commission no longer has concerns about competition in the console market.

Microsoft submitted its proposal to the European Commission last week but did not disclose details.

The sources said 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.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

The EU competition enforcer has given rivals and customers until the end of this week to provide feedback before it decides on the deal by May 22, they said.

Microsoft's EU offer is narrower than that to the UK competition agency, which includes licensing deals to cloud gaming services and a 10-year deal with parity on content and quality for Activision's Call of Duty franchise to critic and PlayStation owner Sony.

The Commission is likely to accept such licensing deals and clear the deal, other people with direct knowledge of the deal have told Reuters, but it is not clear if the UK watchdog will accept such so-called behavioural remedies.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.