China approves Microsoft’s Activision Blizzard acquisition as it still faces hurdles in the US and UK

The State Administration for Market Regulation cleared the blockbuster US$69 billion takeover bid, which faces legal battles in the US and UK

Activision Blizzard titles once enjoyed enormous popularity in China, but many have been pulled from the market after a dispute with NetEase

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Published: 9:30pm, 30 May 2023Updated: 3:15pm, 2 Jun 2023

China’s State Administration for Market Regulation (SAMR) has cleared Microsoft’s US$69-billion purchase of video gaming giant Activision Blizzard, although the deal still faces antitrust scrutiny in the US and UK.

The SAMR gave the green light to the takeover “unconditionally”, according to a statement published to its official website on Tuesday. The approval was dated May 18.

The blockbuster deal has so far been approved by nearly 40 countries, including 27 in the European Union, along with Japan and Brazil. However, Microsoft still faces antitrust hurdles to completing the acquisition.

In December, the US Federal Trade Commission sued to block the deal, alleging that it would allow the Xbox owner to “suppress competitors” in the nascent subscription and cloud gaming segments. Microsoft is defending the deal in court.

The software giant is also challenging the UK Competition and Markets Authority, which last month blocked the deal also over competition concerns. The merger agreement expires on July 18, but it could be extended.

Activision Blizzard, one of the largest game publishers in the world, is responsible for hit titles such as World of Warcraft, Call of Duty and Candy Crush. It also enjoyed huge popularity in China until it stopped offering many of its games in the market amid a dispute with local publishing partner NetEase.

Late last year, Blizzard ended that long-standing partnership, which started in 2008, resulting in a spat that spilled into public and culminated in a US$45 million lawsuit in April.

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