Microsoft’s bid to buy Activision Blizzard clears key hurdle, but $69bn deal is still at risk

Microsoft President Brad Smith addresses a media conference regarding Microsoft's acquisition of Activision Blizzard and the future of gaming in Brussels, on Feb. 21, 2023. (AP)
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Updated 16 May 2023
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Microsoft’s bid to buy Activision Blizzard clears key hurdle, but $69bn deal is still at risk

  • The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft

LONDON: The European Union on Monday approved Microsoft’s $69 billion purchase of video game maker Activision Blizzard, deciding the deal won’t stifle competition for popular console titles like Call of Duty and accepting the US tech company’s remedies to boost competition in cloud gaming.
But the blockbuster deal is still in jeopardy because British regulators have rejected it and US authorities are trying to thwart it.
The acquisition, sweetened by Microsoft’s promises to automatically license Activision games to cloud gaming platforms, “would no longer raise competition concerns and would ultimately unlock significant benefits for competition and consumers,” said the European Commission, the 27-nation bloc’s executive arm and top antitrust watchdog.
The commission’s approval “has removed one potential major roadblock for this deal” but “it doesn’t necessarily mean they’re in a stronger position” to overturn the UK’s rejection, said Liam Deane, a game industry analyst for tech research and advisory firm Omdia.
The all-cash deal announced more than a year ago has been scrutinized by regulators around the world over fears that it would give Microsoft and its Xbox console control of Activision’s hit franchises like Call of Duty and World of Warcraft.
Fierce opposition has been driven by rival Sony, which makes the PlayStation gaming system.
Microsoft sought to counter the resistance by striking a deal with Nintendo to license Activision titles like Call of Duty for 10 years and offering the same to Sony if the deal went ahead.
Following its review, the European Commission dismissed the possibility that Microsoft would cut off its games from PlayStation, saying that excluding the most popular gaming console would put a big dent in its profits.
The emerging cloud gaming market received closer scrutiny from Brussels. Cloud gaming frees players from buying expensive consoles and gaming computers by allowing them to stream games they own to tablets, phones and other devices, typically through a cloud platform that may charge a fee.
The commission approved the deal after accepting Microsoft’s offer to modify its licensing agreements to allow users and cloud gaming platforms to stream its titles without paying royalties for 10 years.
The licenses “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose,” Microsoft President Brad Smith said in a statement.
Microsoft has already announced deals to bring Xbox PC games to cloud gaming platforms operated by chipmaker Nvidia and independent player Boosteroid.
Activision games aren’t available on cloud services, but the commission noted that the licensing commitments could expand the cloud gaming market “by bringing Activision’s games to new platforms, including smaller EU players, and to more devices than before.”
The EU decision might help Microsoft’s chances as it faces down regulators in the US, where the Federal Trade Commission is taking the company to court to block the deal. A trial before the FTC’s in-house judge set to begin Aug. 2.
But Brussels’ approval is at odds with the stance taken by British antitrust regulators, who last month upended the biggest tech deal in history over concerns it would hurt competition in the small but rapidly growing cloud gaming market.
Britain’s Competition and Markets Authority said in a statement Monday that it “stands by its decision,” an unusual move that highlights the more muscular approach London has taken.
“Microsoft’s proposals, accepted by the European Commission today, would allow Microsoft to set the terms and conditions for this market for the next ten years,” authority chief executive Sarah Cardell said. “They would replace a free, open and competitive market with one subject to ongoing regulation of the games Microsoft sells, the platforms to which it sells them, and the conditions of sale.”
The companies are appealing the UK decision to a tribunal, but history doesn’t bode well.
The watchdog previously denied Facebook parent Meta’s purchase of Giphy over concerns it would limit innovation and competition. The social media giant was ultimately forced to sell off the GIF-sharing platform after it lost an appeal.
If Microsoft’s appeal fails, the company would be forced to either scrap the deal or carve out the UK as a separate market, which appeared to be an unfeasible option, said Deane, the game analyst.

 


EU bans 4 more Russian media outlets from broadcasting in the bloc, citing disinformation

Updated 18 May 2024
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EU bans 4 more Russian media outlets from broadcasting in the bloc, citing disinformation

  • The EU has already suspended Russia Today and Sputnik among several other outlets since February 2022

BRUSSELS: The European Union on Friday banned four more Russian media outlets from broadcasting in the 27-nation bloc for what it calls the spread of propaganda about the invasion of Ukraine and disinformation as the EU heads into parliamentary elections in three weeks.
The latest batch of broadcasters consists of Voice of Europe, RIA Novosti, Izvestia and Rossiyskaya Gazeta, which the EU claims are all under control of the Kremlin. It said in a statement that the four are in particular targeting “European political parties, especially during election periods.”
Belgium already last month opened an investigation into suspected Russian interference in June’s Europe-wide elections, saying its country’s intelligence service has confirmed the existence of a network trying to undermine support for Ukraine.
The Czech government has imposed sanctions on a number of people after a pro-Russian influence operation was uncovered there. They are alleged to have approached members of the European Parliament and offered them money to promote Russian propaganda.
Since the war started in February 2022, the EU has already suspended Russia Today and Sputnik among several other outlets.

 

 


Israeli soldiers post abusive videos despite army’s pledge to act: BBC analysis

Updated 17 May 2024
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Israeli soldiers post abusive videos despite army’s pledge to act: BBC analysis

  • The BBC analyzed 45 photos and videos posted online by Israeli soldiers that showed Palestinian prisoners in the West Bank being abused and humiliated

LONDON: Israeli soldiers continue to post videos of abuse against Palestinian detainees despite a military pledge to take action against the perpetrators, analysis by the BBC has found.

The broadcaster said it had analyzed 45 photos and videos posted online by Israeli soldiers that showed Palestinian prisoners in the West Bank being abused and humiliated. Some were draped in Israeli flags. 

Experts say the footage and images, which showed Palestinians being stripped, beaten and blindfolded, could breach international law and amount to a war crime.

The Israel Defense Forces said some soldiers had been disciplined or suspended for “unacceptable behavior” but did not comment on the individual cases identified by the BBC.

The most recent investigation into social media misconduct by Israeli soldiers follows a previous inquiry in which BBC Verify confirmed Israeli soldiers had filmed Gazan detainees while beating them and then posted the material on social platforms.

The Israeli military has carried out arbitrary arrests across Gaza and the West Bank, including East Jerusalem, since the Hamas attack on Oct. 7. The number of Palestinian prisoners in the West Bank has since risen to more than 7,060 according to the Commission of Detainees’ Affairs and the Palestinian Prisoner Society.

Ori Givati, spokesperson for Breaking the Silence, a non-governmental organization for Israeli veterans working to expose wrongdoing in the IDF, told the BBC he was “far from shocked” to hear the misconduct was ongoing.

Blaming “current far-right political rhetoric in the country” for further encouraging the abuse, he added: “There are no repercussions. They [Israeli soldiers] get encouraged and supported by the highest ministers of the government.”

He said this played into a mindset already subscribed to by the military: “The culture in the military, when it comes to Palestinians, is that they are only targets. They are not human beings. This is how the military teaches you to behave.”

The BBC’s analysis found that the videos and photos it examined were posted by 11 soldiers of the Kfir Brigade, the largest infantry brigade in the IDF. None of them hid their identity.

The IDF did not respond when the BBC asked about the actions of the individual soldiers and whether they had been disciplined.

The BBC also attempted to contact the soldiers on social media. The organization was blocked by one, while none of the others responded.

Mark Ellis, executive director of the International Bar Association, urged an investigation into the incidents shown in the footage and called for the IDF to discipline those involved.

In response to the BBC’s investigation, the IDF said: “The IDF holds its soldiers to a professional standard … and investigates when behavior is not in line with the IDF’s values. In the event of unacceptable behavior, soldiers were disciplined and even suspended from reserve duty.

“Additionally, soldiers are instructed to avoid uploading footage of operational activities to social media networks.”

However, it did not acknowledge its pledge to act on BBC Verify’s earlier findings in Gaza, according to the broadcaster.


4 journalists killed in Gaza as death toll climbs above 100

Updated 17 May 2024
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4 journalists killed in Gaza as death toll climbs above 100

  • 104 Palestinian media workers reported dead, along with 3 Lebanese and 2 Israelis

LONDON: The Gaza Media Authority on Thursday said that four journalists had been killed in an Israeli airstrike, bringing the total number of journalists killed in the conflict to more than 100.

The victims were identified as Hail Al-Najjar, a video editor at the Al-Aqsa Media Network; Mahmoud Jahjouh, a photojournalist at the Palestine Post website; Moath Mustafa Al-Ghefari, a photojournalist at the Kanaan Land website and Palestinian Media Foundation; and Amina Mahmoud Hameed, a program presenter and editor at several media outlets, according to the Anadolu Agency.

The Gaza Media Office said the four were killed in an Israeli airstrike, but did not provide additional details on the circumstances surrounding their deaths.

A total of 104 Palestinian journalists have been killed since the conflict began on Oct. 7. Two Israeli and three Lebanese media workers also have been killed.

The latest loss adds to the already heavy toll on media workers, with the Committee to Protect Journalists saying the Gaza conflict is the deadliest for journalists and media workers since it began keeping records.

Israel is continuing its offensive on Gaza despite a UN Security Council resolution demanding an immediate ceasefire.

On Thursday, South Africa, which has brought a case accusing Israel of genocide to the International Court of Justice, urged the court to order Israel to halt its assault on Rafah.

According to Gaza medical authorities, more than 35,200 Palestinians have been killed, mostly women and children, and over 79,200 have been injured since early October when Israel launched its offensive following an attack by Hamas.


Russia outlaws SOTA opposition news outlet

Updated 17 May 2024
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Russia outlaws SOTA opposition news outlet

  • Authorities said outlet tries to destabilize the socio-political situation in Russia
  • Move could criminalize SOTA content and puts its reporters at risk of arrest

LONDON: Russia declared opposition media outlet SOTA “undesirable” on Thursday, a move that could criminalize the sharing of its content and put its reporters at risk of arrest.
Authorities in Russia have declared dozens of news outlets, think tanks and non-profit organizations “undesirable” since 2015, a label rights groups say is designed to deter dissent.
In a statement, Russia’s Prosecutor General accused SOTA of “frank attempts to destabilize the socio-political situation in Russia” and “create tension and irritation in society.”
“Such activities, obviously encouraged by so-called Western inspirers, have the goal of undermining the spiritual and moral foundations of Russian society,” it said.
It also accused SOTA of co-operating with TV Rain and The Insider, two other independent Russian-language outlets based outside of the country that are linked to the opposition.
SOTA Project, which covers opposition protests and has been fiercely critical of the Kremlin, denied it had anything to do with TV Rain and The Insider and rejected the claims.
But it advised its followers in Russia to “remove reposts and links” to its materials to avoid the risk of prosecution. SOTA’s Telegram channel has around 137,000 subscribers.
“Law enforcement and courts consider publishing online to be a continuing offense. This means that you can be prosecuted for reposts from 2023, 2022, 2021,” it said.
SOTA Project was born out of a split with a separate news outlet called SOTAvision, which still covers the opposition but distanced itself from the prosecutors’ ruling on Thursday.
Since launching its offensive in Ukraine, Moscow has waged an unprecedented crackdown on dissent that rights groups have likened to Soviet-era mass repression.
Among other organizations labelled as “undesirable” in Russia are the World Wildlife Fund, Greenpeace, Transparency International and Radio Free Europe/Radio Liberty.


OpenAI strikes deal to bring Reddit content to ChatGPT

Updated 17 May 2024
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OpenAI strikes deal to bring Reddit content to ChatGPT

  • Deal underscores Reddit’s attempt to diversify beyond its advertising business
  • Content will be used to train AI models

LONDON: Reddit has partnered with OpenAI to bring its content to popular chatbot ChatGPT, the companies said on Thursday, sending the social media platform’s shares up 12 percent in extended trade.
The deal underscores Reddit’s attempt to diversify beyond its advertising business, and follows its recent partnership with Alphabet to make its content available for training Google’s AI models.
ChatGPT and other OpenAI products will use Reddit’s application programming interface, the means by which Reddit distributes its content, following the new partnership.
OpenAI will also become a Reddit advertising partner, the company said.
Ahead of Reddit’s March IPO, Reuters reported that Reddit struck its deal with Alphabet, worth about $60 million per year.
Investors view selling its data to train AI models as a key source of revenue beyond Reddit’s advertising business.
The social media company earlier this month reported strong revenue growth and improving profitability in the first earnings since its market debut, indicating that its Google deal and its push to grow its ads business were paying off.
Reddit’s shares rose 10.5 percent to $62.31 after the bell. As of Wednesday’s close, the stock is up nearly 12 percent since its market debut in March.