The UK’s Competition and Markets Authority (CMA) has launched an antitrust investigation into Microsoft’s proposed acquisition of Activision Blizzard, with the CMA stating that it needs more information to assess the deal’s potential impact on competition.
Microsoft is acquiring Activision Blizzard for $68.7 billion, but regulators in several countries are scrutinizing the deal. In the UK, the CMA will consider whether the acquisition would lead to a substantial lessening of competition (SLC) in the market.
The CMA has identified three areas of concern:
- Competition for console manufacturers: The agency is worried that Microsoft’s ownership of Activision Blizzard could give it an unfair advantage over other console manufacturers, such as Sony.
- Availability of popular games on different platforms: The CMA is concerned that the acquisition could lead to some popular games being exclusive to certain platforms or consoles.
- Impact on game development and innovation: Regulators are examining whether the deal would reduce competition in the market for new and innovative games.
Microsoft has stated its commitment to making Activision Blizzard’s games available on multiple platforms, including Sony’s PlayStation, and has highlighted its track record of enabling cross-platform play and interoperability. The company also claims that it will continue to allow developers to choose how to distribute their games.
In response to the CMA’s investigation, Microsoft has released a statement saying that it is "confident" that the deal will be cleared by regulators in all relevant jurisdictions.
The UK’s decision on the acquisition could have significant implications for the global gaming industry. The regulator’s findings and recommendations will likely influence similar investigations by other regulatory bodies around the world.
Sources:
- TechCrunch article: "UK launches antitrust investigation into Microsoft’s $69B proposed Activision acquisition"
- CMA press release: "Microsoft-Activision deal: CMA launches investigation"
- Microsoft statement: "Microsoft’s response to CMA’s investigation"
