Microsoft and Activision Blizzard merger gets unconditional approval in Serbia, concessions ‘likely’ to be offered to EU regulators

Microsoft is still facing immense scrutiny from regulators in most countries where it needs to gain approval for its proposed acquisition of Activision Blizzard for nearly $69 billion. But the company has reportedly gained unconditional clearance in three territories now.

Out of the 16 countries that have to approve the deal, Brazil and Saudi Arabia were the first to greenlight the merger. Reuters reported on Monday that Serbia has joined the list.

Microsoft still has a long, arduous path to go through, though. In major markets, such as the U.S., the U.K., and Europe, the company is facing more in-depth investigations. Regulators in the said countries are still concerned that its merger with the “Call of Duty” and “Warcraft” publishers could cause a significant lessening of market competition.

The same report said the Xbox parent company is gearing up to offer concessions to the European Commission in the coming weeks. One of the concessions Microsoft is expected to offer to the EU would be a 10-year “licensing deal” with Sony PlayStation.

It is worth noting that regulators typically ask companies proposing mergers for concessions after issuing an official list of concerns following an investigation. But Microsoft appears to be working on submitting those early, presumably in the hopes of gaining early approval from the Commission.

When the EU regulators announced it is opening a Phase 2 investigation on the merger, one of the specific concerns it cited was the future distribution of Activision Blizzard IPs, especially “Call of Duty.” The competition watchdog is worried that Microsoft could use the merger to limit its rivals’ access to these games.

EU regulators announced the launch of its Phase 2 investigation last Nov. 8. They have set a 90-day deadline for its decision.

Meanwhile, it can be recalled that Microsoft recently revealed it reached out to Sony earlier this month to offer an agreement that guarantees “Call of Duty” will have a day-and-date release on PlayStation for at least 10 years. It remains unknown how Sony responded to the offer.

In a statement, Microsoft insisted on calling Sony the “industry leader” of the video games market and took note of Sony’s continuing concerns about its access to “Call of Duty” in the future. “But we've said we are committed to making the same game available on the same day on both Xbox and PlayStation,” Microsoft said. “We want people to have more access to games, not less.”