Microsoft formally got an antitrust warning from the European Union last month in connection with its proposal to purchase Activision Blizzard.
According to reports, Microsoft plans to launch its own mobile games shop for iPhones and Android handsets as soon as next year if authorities accept its $75 billion acquisition of Activision Blizzard.
In a report in the Financial Times, Phil Spencer, Microsoft’s head of gaming, has said that the EU’s Digital Market Act (DMA), which is scheduled to take effect in March 2024, will help the corporation achieve its ambitions for mobile app stores. By asking Apple and Google to open up their systems, the DMA will allow companies to upload their app stores onto iPhones and Android phones.
“We want to be in a position to provide Xbox and content from both us and our third-party partners across any screen that anybody would want to play,” Microsoft Gaming CEO Phil Spencer said in an interview with the Financial Times. In addition, he added, “Now, we can’t accomplish it on mobile devices, but we want to prepare for a world that we anticipate will arrive in which such gadgets will be made available.”
The owner of the Xbox gaming system is battling regulators in the US, Europe, and the UK over the possible effects on competition of buying the company behind one of the most well-known game franchises in the world, Call of Duty.
The European Commission formally issued an antitrust notice to Microsoft last month regarding its acquisition of Activision Blizzard. The US Federal Trade Commission (FTC) has also sued Microsoft for acquiring Activision Blizzard, a renowned video game producer.
Furthermore, according to the report, Spencer believes the deal will increase competition in what he refers to as the “largest platform people play on” – smartphones – where Apple and Google currently have what some antitrust authorities refer to as a “duopoly” over the distribution of games and other apps.
Under the DMA, the EU is anticipated to designate Apple and Google as “gatekeepers,” obliging them to adjust the regulations that govern app distribution on iPhones and Android devices.
According to the article, the Big Tech companies may submit an appeal, postponing enforcement beyond the March deadline.
Last month, the tech giant negotiated a 10-year arrangement with Japanese gaming giant Nintendo to offer Xbox titles, including Call of Duty (CoD), to Nintendo’s players, ahead of a European Commission hearing.
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