Microsoft is preparing to launch an Xbox app store for iOS and Android in 2024, but the company says the plan depends on regulatory approval of its $68.7 billion acquisition of Activision Blizzard, Phil Spencer, head of Microsoft’s gaming division, told regulators.
What Microsoft intends and why it hinges on the Activision deal
According to Spencer, Microsoft wants to “be in a position to offer Xbox content — ours and from third-party partners — on any screen where someone wants to play.” He added that, today, Microsoft cannot do that on mobile devices and that the company aims to move toward a future in which those devices are open to such offerings.
Regulatory obstacles to the acquisition
The Activision Blizzard takeover has faced major hurdles. The U.S. Federal Trade Commission filed a complaint and sought to block the acquisition. In the U.K., competition authorities warned the merger could lead to a “substantial lessening of competition in game consoles” and “could harm UK players.”
Documents and public statements
Microsoft disclosed the app store proposal in documents it submitted to the U.K. Competition and Markets Authority (CMA) in 2022. Those filings included no technical details about the store, but Microsoft emphasized that a partnership with Activision Blizzard is important to developing the plan.
- Microsoft told the CMA the project exists but did not provide specifics about how the store would operate.
- Spencer noted that upcoming digital markets legislation is among the reasons Microsoft is planning for such changes.
Legal context: digital markets rules and deadlines
The European Union approved the Digital Markets and Services Acts last year to regulate conditions set by major tech platforms. Under those rules, platforms designated as “gatekeepers” must make their devices compatible with rival app stores.
One report cited by Microsoft indicated Apple is already working on iOS compatibility. The new legislation includes an adaptation period that ends in March 2024.
Source attribution
This report is based on information provided to regulators and on reporting by Engadget.
