The European Commission, part of the executive of the European Union, approved Microsoft's $68.7 billion purchase of Call of Duty developer Activision Blizzard, a decision that starkly contrasts with the United Kingdom's block of the purchase.
Officials said Monday that they would allow the deal as long as Microsoft ensured that other console providers such as Sony would continue to receive access to Activision titles such as Call of Duty and Overwatch 2 for the next 10 years.
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The commission also said the prominence of cloud gaming, the reason used by the U.K. to block the deal in that country, was insufficient to justify a restriction on the purchase.
"These commitments fully address the competition concerns identified by the commission and represent a significant improvement for cloud game streaming compared to the current situation," the commission said in a statement.
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"The European Commission has required Microsoft to license popular Activision Blizzard games automatically to competing cloud gaming services," Microsoft President Brad Smith said in a statement. "This will apply globally and empower millions of consumers worldwide to play these games on any device they choose."
The U.K. Competition and Markets Authority blocked the same transaction on April 26, citing its threat to the cloud market. "Cloud gaming needs a free, competitive market to drive innovation and choice. That is best achieved by allowing the current competitive dynamics in cloud gaming to continue to do their job," Martin Coleman, the CMA investigator overseeing the case, said in a statement. Microsoft intends to contest the case and has until May 25 to do so.
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Microsoft offered to buy Activision Blizzard in January 2022, only to be blocked by the U.S. Federal Trade Commission in December 2022 over an alleged monopoly involving Xbox Game Pass.
How the British and EU decisions will affect the FTC's suit is unclear.