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European gaming labor group backs Microsoft’s Activision-Blizzard deal

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  • The European Games Developer Federation has made clear its stance on the Microsoft-Blizzard acquisition in favor of Microsoft.
  • The organization says “[The acquisition’s] The potential positive effects on competition in games markets, in general, outweigh the specific competition concerns of limited console and subscription markets.”

The European Games Developer Federation, a labor organization representing game developers across Europe, has thrown its weight behind Microsoft’s proposed acquisition of Activision Blizzard.

EGDF says “Supports Microsoft’s Activision-Blizzard acquisition, as its potential positive effects on the in-game markets, in general, outweigh the specific competitive concerns of the limited console and subscription markets.“

It comes as EU regulators warned Microsoft that it could face an antitrust investigation over allegations that the tech company could engage in anti-competitive behavior if the deal closes.

gave EGDF Represents game developers in 21 European countries. 2,500 companies are members of the EGDF, representing 40,000 employees, making it one of the largest gaming labor organizations in the world.

Although the endorsement is no longer on the EGDF website, a statement was posted on it. Resetta And reposted by industry analyst IdolSloth:

The EGDF supports Microsoft’s acquisition of ActivisionBlizzard, as its potential positive effects on competition in game markets, in general, outweigh specific competition concerns related to the limited console and subscription markets. Furthermore, in the console game markets, Sony is the clear market leader with its PlayStation platform, and Microsoft is still in a challenger position.

Microsoft’s acquisition of Activision Blizzard strengthens its competitive advantages in global game markets. EGDF supports fair and sustainable competition in game markets. In particular, the EGDF is concerned about the recent consolidation of the global games industry. The stronger the competitive market players, the better for European game developers” – EGDF

EGDF welcomes the Activision-Blizzard acquisition but encourages the European Commission to fully investigate the matter. Microsoft is still the underdog compared to Sony, the statement said, noting that the latter has a larger market share.

The statement mentions Europe’s new Digital Markets Act and how Microsoft can use it to increase competition, “Microsoft is among the first to announce that it will fully exploit the competition-enhancing market potential of the recently passed Digital Markets Act (DMA) by launching its own independent application stores on both Apple and Google platforms. Will find..“

The Digital Markets Act is a new law in the EU that requires Apple and Google to allow sideloading of apps, including from app stores that are not within the Apple/Google ecosystem. DMA has the potential to make cloud gaming on mobile devices more competitive in Europe and Microsoft can take advantage of this.

EGDF argues that Microsoft will be able to increase competition with Apple and Google after DMA is implemented, and it can further expand its services to mobile devices. Apple currently bans monetization outside of its ecosystem, meaning all transactions on apps must go through the Apple Store and pay a 30% fee.

One of the biggest concerns from regulators around the world is that Microsoft could lock certain games from other platforms and make them exclusive. This is what was done with Redfall and Starfield when Bethesda was acquired by Microsoft.

Activision Blizzard is a big company, and its proposed acquisition isn’t just the biggest acquisition in gaming. It is one of the largest M&A deals ever proposed.

Worryingly, Microsoft could pull popular titles like Call of Duty from competing platforms. Microsoft has a history of doing this and is being watched closely by regulators.

EGDF calls on Microsoft to continue to support competition by:

  • Continue your work to make all your platforms more open and transparent, especially by broadening its App Store rules to cover Xbox.
  • Also continue to allow controversial cultural and artistic content on all its platforms.
  • Continue to allow Web3 games on its platforms, as they can be game-changers that help new European platforms emerge.
  • Continue investing in small and medium-sized game developer studios, getting more diverse content across its platforms.
  • Continue to invest in cross-platform game development and make its games widely available across all platforms.
  • Game developers and publishers have the same access to personal and non-personal data on their games as Microsoft has on all of its platforms.
  • Break the console market trilogy and compete on content by lowering its 30% platform fee on Xbox.
  • Continue a close dialogue with European game developers to improve its platforms and application stores.

The EGDF’s endorsement weighs Microsoft’s proposed acquisition and gives the tech giants a foothold in Europe. The deal can only close after approval from regulators around the world. The EU will make a final decision sometime in April.

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