The Chinese government has approved Microsoft’s plans to acquire Activision Blizzard.
Echoing the EU’s own decision, China’s State Administration for Market Regulation (SAMR) has greenlit Microsoft’s controversial acquisition of Activision Blizzard (via Seeking Alpha). This comes at odds with the UK government’s decision to “prevent” the acquisition as well as the ongoing lawsuit raised by the Federal Trade Commission of the United States.
In a statement to PC Gamer, an Activision Blizzard spokesperson wrote: "we're glad to see China join dozens of other major countries in welcoming more competition in the gaming industry." The statement continued: “SAMR has unconditionally approved our merger with Microsoft, using facts and data to reach the correct conclusion. We are committed to the Chinese market, with many of our amazing players and employees based there, and we look forward to bringing them new choices and benefits as part of this deal."
Unsurprisingly, Microsoft walked a similar line, stating: “China's unconditional clearance of our acquisition of Activision Blizzard follows clearance decisions from jurisdictions such as the European Union and Japan, bringing the total to 37 countries representing more than two billion people” (via RPS). The Microsoft spokesperson continued, claiming that "The acquisition combined with our recent commitments to the European Commission will empower consumers worldwide to play more games on more devices."
Odd couple
China’s approval of Microsoft’s plans to acquire Activision Blizzard comes as a strange addition to the ongoing saga. In November 2022, Activision Blizzard suspended most Blizzard game services in mainland China, announcing in a press release that it would not be renewing its agreement with NetEase, a publishing company that previously facilitated the distribution of Blizzard titles throughout the Chinese market.
This means that Activision Blizzard has spent 2023 in the proverbial wilderness when it comes to its Chinese market share. However, despite this source of tension, it would appear that the Chinese government has little issue with Microsoft’s plan to acquire the well-known gaming company.
The acquisition has come under a great deal of scrutiny due to concerns that it might create a monopoly. Though Microsoft has attempted to mollify concerns by striking distribution deals with Nintendo and offering commitments to platform its competitors, this has not been enough to satisfy authorities in the UK or the US. Both governments see the potential for a cloud gaming monopoly facilitated by Microsoft’s (admittedly excellent) Xbox Game Pass service.
China’s approval of the acquisition is unlikely to change the position of the UK or US trade authorities. Though the decision may serve as a source of political pressure, it is also entirely possible that China’s position will galvanize the UK and the US in their scrutiny of the acquisition. Either way, it doesn’t look like this saga will reach an end anytime soon.
