The FNE approved in Phase 1 the merger operation consisting of the acquisition of control of Activision Blizzard, Inc (ABK) by Microsoft Corporation (Microsoft), after ruling out that it is apt to substantially reduce competition.
These companies carry out activities in the same segments: development, publication and distribution of video games; and on different levels, with Microsoft producing the Xbox console and other video game platforms, such as GamePass, whereby their activities overlap both horizontally and vertically.
The Prosecutor's Office considered that the operation was not suitable to substantially reduce competition considering, among other evidence, patterns and preferences of video game consumers in Chile.
In its analysis of horizontal effects, the investigation ruled out risks, considering that in the markets in which the parties overlap their activities (development and publication of video games, distribution of computer video games and sale of
merchandising and digital display advertising) the limits were not exceeded. market concentration thresholds established in the 2022 Horizontal Concentration Operations Analysis
Guide , and that a large number of relevant competitors and a dynamic market were observed.
In the vertical risk assessment, the eventual blocking of inputs was ruled out, consisting of Microsoft, after acquiring ABK, ceasing to provide games like
Call of Duty to its competitors. This considering, among other arguments, that ABK faces competitive pressure from players such as Electronic Arts, Take Two, Ubisoft and Epic Games, Sony and Nintendo, and that the relevance of
Call of Duty would be comparatively less in Latin America than in other regions of the world.