The European Commission has approved Microsoft’s $69bn (£55bn) acquisition of Activision Blizzard, the maker of Call of Duty and World of Warcraft.

The deal, announced in January, is the biggest-ever acquisition in the gaming industry. It will give Microsoft control of some of the world’s most popular video game franchises and will make it the third-largest gaming company by revenue.

The European Commission said it had approved the deal after Microsoft agreed to several concessions, including licensing popular Activision Blizzard games to competing cloud gaming services for 10 years and selling off some of Activision Blizzard’s assets, including its Guitar Hero and Candy Crush brands.

The approval of the deal by the European Commission is a major victory for Microsoft. It is the first major regulatory hurdle the deal has faced, and it is likely to pave the way for approval from other regulators worldwide.

The deal is expected to close in the second half of 2023. Once it is complete, it will transform Microsoft’s gaming business and make it a major player in the global gaming market.

The acquisition of Activision Blizzard is part of Microsoft’s broader strategy to expand its gaming business. The company has also made a number of other investments in gaming in recent years, including the acquisition of ZeniMax Media, the parent company of Bethesda Softworks.

The growing popularity of video games is driving Microsoft’s gaming ambitions. The global gaming market is now worth an estimated $175bn and is expected to grow to $268bn by 2025.

The acquisition of Activision Blizzard will give Microsoft a major foothold in the growing gaming market. It will also give the company some popular franchises that it can use to attract new customers and grow its gaming business.