Microsoft’s decision to acquire Activision Blizzard has been an apple of contention for some time between the Xbox giant and its biggest competitor in the market, Sony Corporation. Both companies have been engaged in a tug of war as they each try to justify how, if any, the deal should proceed, but the wind appears to be blowing in Microsoft’s favor thanks to the recent decision by the Comptroller General of the Brazilian Competition Authority, shortened to SG-CADE.
CAD body published a file long statement (albeit in Portuguese) to support the state of Microsoft and how it does not affect or affect the competitive market in any way. After that, Microsoft took the liberty of translating the most important points and uploading them in a . format separate file on its news platform. The new document summarizes CADE’s decision into seven main points, four of which relate to the market position of the games themselves, and the other three about the position of Microsoft and Activision Blizzard in that market.
After an in-depth market review, CADE has concluded that the gaming industry is always competitive, at least in Brazil, and that its shares in the markets in which the company is trying to compete are low – less than 20% of all potential sectors. As for the digital distribution of games and the issue of Microsoft holding some games hostage – a primary concern for Sony – such as Call of Duty, the panel sees no reason why Microsoft should not publish its games on other platforms, as there is no incentive to do so at the moment.
The latter half of the document deals with the “Call of Duty” character running around in the room, and how they can influence or manipulate competition in Microsoft’s favour. In short, CADE doesn’t see Call of Duty as an essential game so Microsoft can compete with game distributors, as Nintendo, for example, competes well enough in the market without relying on the Activision catalog. Furthermore, the committee continues to believe that Sony has a larger and more dedicated fan base that has been loyal to the brand for over 20 years, as well as a solid catalog of games that are sure to stand up to such stated ferocity. Competition.
Finally, the authority declares that its primary objective is “to protect competition in Brazil and the welfare of Brazilian consumers, and not the special interests of specific competitors,” in its words. The authority believes that every company has an equal opportunity in the market, and that the current takeover deal will not provide an ultimatum to this competition. Microsoft also believes that its decision will be correct and correct, and therefore has posted it on its website for all to see.
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