Japan's Fair Trade Commission ended the review as Microsoft's acquisition of Activision Blizzard 'does not hinder competition', why?


by

Prachatai

In January 2022, Microsoft announced that it would acquire major game maker Activision Blizzard . For this acquisition, the Federal Trade Commission (FTC) of the United States is reviewing based on antitrust law (antitrust law). On the other hand, Japan's Fair Trade Commission announced that it will publish the results of Microsoft's review of the acquisition of Activision Blizzard and approve the acquisition plan.

(March 28, 5th year of Reiwa) Examination results regarding the integration of Microsoft Corporation and Activision Blizzard Inc. | Japan Fair Trade Commission
https://www.jftc.go.jp/houdou/pressrelease/2023/mar/kiketsu_230328m.html



Results of review regarding integration of Microsoft Corporation and Activision Blizzard Inc.
(PDF file)

https://www.jftc.go.jp/houdou/pressrelease/2023/mar/kiketsu/230328_ma.pdf

Japan's Fair Trade Commission Approves Microsoft's Acquisition of Blizzard Entertainment
https://jp.ign.com/games/66852/news/blizzard-entertainment

Japan's competition regulator has approved Microsoft's acquisition of Activision Blizzard | VGC
https://www.videogameschronicle.com/news/japans-competition-regulator-has-approved-microsofts-acquisition-of-activision-blizzard/

In January 2022, Microsoft announced that it would acquire Activision Blizzard for $68.7 billion (about 9.5 trillion yen). In Japan, Microsoft and Activision Blizzard have submitted to the Japan Fair Trade Commission plans for share acquisitions and mergers based on the provisions of the Antimonopoly Act , which have been reviewed.

In June 2022, we are soliciting information and opinions from third parties regarding this acquisition.




The Fair Trade Commission will start the first examination on March 10, 2023. On March 28, 2023, the results of the examination were announced, stating, 'Because it was recognized that it would not substantially restrain competition in a certain field of trade, a cease and desist order was issued to the company group concerned. We have notified that we will not be doing this, and have closed the review.'




The perspective of the review conducted by the Japan Fair Trade Commission this time is that 'Microsoft's acquisition of Activision Blizzard may have a significant impact on competition in the market. would substantially limit competition in

In the text of the Fair Trade Commission explaining the decision, the Fair Trade Commission said, 'PC game development and publishing business and game subscription service', 'Console game development and publishing business and game subscription service'. We assume that Microsoft refuses to supply games to competitors from four perspectives: PC game development and publishing business and cloud gaming service, and console game development and publishing business and cloud gaming service. We are considering the possibility that it will lead to a monopoly in the market.



・PC game development and publishing business and game subscription service
The table below shows the market share of the PC game development and publishing business in Japan. Both Microsoft and Activision Blizzard are less than 5%, and even if Microsoft acquires Activision Blizzard, there are multiple competitors with high market shares. Even if Microsoft, which acquired Activision Blizzard, no longer supplies games for PCs to other companies, it was decided that users would be able to play games from other major manufacturers, so there would be no monopoly.



again. Since Microsoft's domestic market share for game subscription services, including PCs and consoles, is less than 5%, the impact of this acquisition on competition in the PC game subscription service market is judged to be limited.



・Console game development and publishing business and game subscription service
The market share of the game development and publishing business for game consoles in Japan is shown in the table below. In 2021, the domestic market share of console games will be less than 5% for both Microsoft and Activision Blizzard. Therefore, even if Microsoft stops supplying games to other companies, it is judged that monopoly will not occur in the country.



Also, as mentioned above, Microsoft's domestic market share in the game subscription service market is limited. So, even if Microsoft refuses to distribute games created by third-party developers on its own subscription service, companies can still distribute games on another game subscription service. It is said that there will be no problems with market closure or exclusivity as a result of the acquisition.

・Cloud gaming service for PC
The table below summarizes the domestic market share of cloud gaming services. The domestic share of cloud gaming services provided by Microsoft is low at about 10%, and even if Microsoft stops supplying games for PCs, users can switch to major cloud gaming services.



In the future, even if Microsoft refuses to supply, users will be able to switch to other cloud gaming services or

outright sales, so there will be no problems with market closure or exclusivity.

・Cloud gaming service for consoles
As mentioned above, the share of Microsoft's cloud gaming service in Japan is limited. In addition, Activision Blizzard's globally popular game ' Call of Duty ' also has more popular games in Japan, such as ' Pocket Monsters ' and ' Splatoon 3 ', so we acquired Activision Blizzard. Even if Microsoft refuses to supply competitors' cloud gaming services, the impact is said to be limited.



For the above reasons, the Fair Trade Commission has determined that ``It cannot be said that Microsoft's acquisition of Activision Blizzard will substantially restrict competition in the market.'' In addition, this acquisition was recognized as falling under the ' safe harbor standards for vertical business combinations ' stipulated in the Antimonopoly Act, and 'We have notified Microsoft and Activision Blizzard that we will not issue a cease and desist order. I have announced.

On the other hand, the U.S. Federal Trade Commission said, ``If Microsoft acquires Activision Blizzard, it will be able to suppress competitors in game subscription services and cloud gaming services,'' Microsoft said to prevent the acquisition. is reported to have been sued.

Federal Trade Commission sues to block Microsoft's acquisition of Activision Blizzard - GIGAZINE

Related Posts:

in Game, Posted by log1r_ut