UK regulator: Microsoft’s Activision deal could harm UK gamers

The Competition and Markets Authority of the United Kingdom has ruled that Microsoft’s deal to buy Activision Blizzard would weaken the global rivalry between Microsoft’s Xbox and Sony’s PlayStation consoles, resulting in higher prices and less competition for UK gamers.

The UK’s competition regulator has released its findings following an extensive investigation into Microsoft’s $68.7 billion deal to buy Activision Blizzard, which raised several concerns. The UK’s competition watchdog warned that the proposed merger, which would propel Microsoft to the position of third-largest video game publisher globally, might harm tens of millions of players in the nation by raising costs or restricting their options.

The CMA stated that there is a chance that Microsoft may attempt to make Call of Duty available only on Xbox consoles under the terms of the agreement. The watchdog has suggested a set of possible remedies that Microsoft could take to get approval for the Activision Blizzard acquisition in the UK. The regulators suggest selling or spinning off the Call of Duty, or the entire Activision part of the combined Activision Blizzard.

The CMA favored a structural solution, such as a partial sale, spin-off, or outright ban of the merger, even though it did not completely rule out alternative possibilities, such as a license to guarantee the distribution of Call of Duty to other platforms. Microsoft responded to the CMA’s preliminary findings by reaffirming that it will provide equitable access to Call of Duty on all significant gaming platforms, including PlayStation.

Microsoft faces a long and difficult journey ahead

Now that the U.K. antitrust probe is expected to continue for a few more months, Microsoft’s hopes for a quick favorable resolution to the case have been dashed. The British regulator stated that for its final report, which is due on April 26, it will collect input from the parties involved, including potential solutions to address its concerns about competition.

The UK Competition and Markets Authority’s preliminary decision is another indication of how antitrust authorities throughout the world are becoming more opposed to the merger. The US Federal Trade Commission filed a lawsuit in December to stop the acquisition due to similar allegations, while the European Union is reviewing the deal.

Microsoft’s biggest rival Sony is also opposing the all-cash transaction, which is expected to be the biggest in the history of the tech industry and would give Microsoft ownership over superhit video game franchises like Candy Crush, World of Warcraft, and Call of Duty.

Header: Activision Blizzard