Brazil’s Administrative Council for Economic Defense (CADE) has approved Microsoft’s proposed acquisition of Activision-Blizzard without restrictions. Brazil joins Saudi Arabia as the second major governing body to not only approve the deal, but to approve it without restrictions as well.
While CADE does believe that the potential of making Activision-Blizzard games exclusive to Xbox consoles is there as a potential way to increase overall market share for Microsoft, it doesn’t see that as a risk of closing the market for other competitors. CADE goes on to strengthen their case by stating that Nintendo doesn’t rely on content like Call of Duty from Activision-Blizzard, yet Nintendo’s Switch is the highest selling console worldwide. Additionally, it’s mentioned that Sony has the largest console install base with a robust catalog of exclusive games and third-party partnerships; thus deeming it in a secure position in the market as well.
While the potential for exclusivity is there, CADE felt strongly that Microsoft had more incentive to keep a franchise like Call of Duty multi-platform due to the revenue that it brings in from other consoles. In its final statement, CADE seemed to take a shot at both Sony (the only publisher to file an opposition of the deal going through with CADE) and other governing bodies dragging their feet on approving the deal by stating, “Furthermore, it is important to highlight that the central objective of CADE’s activities is the protection of competition as a means of promoting the well-being of Brazilian consumers, and not the defense of the particular interests of specific competitors.”
For a really great, translated breakdown of CADE’s statement, check out this post from Idas on ResetEra of all places.
Image from: Microsoft/Xbox
