Microsoft, Activision Blizzard deal get antitrust approval from South Korea
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Microsoft's (NASDAQ:MSFT) $69B deal to acquire Activision Blizzard (NASDAQ:ATVI) received approval from South Korea's antitrust regulator on Tuesday after the government agency said the merger was unlikely to negatively impact its domestic gaming market.
"After reviewing the situation, we have concluded that it is unlikely for Microsoft to pursue a foreclosure strategy by exclusively distributing Blizzard's games through its own platforms," the South Korea Fair Trade Commission said in a statement, according to Yonhap, South Korea's state news agency. "Even in the event of a foreclosure, the move will not exclude rivals from the market."
Microsoft (MSFT) shares rose around 1% in pre-market trading on Tuesday, while Activision (ATVI) gained around 0.4%.
In its review, the FTC said games from Microsoft (MSFT) and Activision Blizzard (ATVI) only have a small portion of the market - between 2% and 4% of console games in 2021 - and only a 4% to 6% market of the cloud gaming market.
"The likelihood of Microsoft restricting competition, considering their primary focus on providing cloud-based content through Xbox consoles, is limited," South Korea's FTC added.
Sony (SONY), which has a dominant position in South Korea via its PlayStation consoles, has repeatedly voiced its displeasure with the merger.
The deal has received clearance in Sony's (SONY) home market of Japan.
Conversely, the U.K.'s antitrust regulator, the Competition and Markets Authority, recently blocked the deal, citing concerns over the cloud gaming market.
Microsoft (MSFT) and Activision (ATVI) are currently appealing the block by the CMA by taking the case to the Competition Appeal Tribunal.
Earlier this month, it was reported that the deal, which has seen approval in most major geographies except for the U.S. and U.K., had received approval in China and Europe.
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