Brazil: Approved merger between Microsoft and Activision Blizzard

On 5 October 2022, the Brazilian Competition Authority (CADE) approved the acquisition by Microsoft of Activision Blizzard, a video game platform company. Although the transaction involves horizontal overlaps of both companies in game publishing, game distribution, online advertising and licensing for merchandising products, CADE did not find risks to competition. In relation to potential vertical effects, CADE assessed whether Microsoft would have the ability or incentives to close any of the vertically related or complementary markets as a result of the transaction. It was concluded that, despite Microsoft having control of a relevant portion of the console and digital game distribution market, the company would not have incentives to make it difficult for publishers of applications competing with Activision Blizzard to access its platforms. Regarding the possibility of closing downstream markets, CADE concluded that despite the relevance and popularity of Activision Blizzard games, they would not be essential assets to the performance of Microsoft's current and potential competitors in the console and digital game distribution markets. CADE concluded that the shares held by both companies in overlapping segments are well below the minimum percentage presumed to affect competition in the market negatively. Despite the Brazilian merger authorisation, the operation also depends on the approval of other jurisdictions, including the United States and the European Commission.