U.K. Competition Authority Warns Microsoft of Potential Activision Deal Probe
2022.09.01 17:42
By Scott Kanowsky
Investing.com — Microsoft has been given five working days to respond to antitrust concerns posed by the U.K.’s competition authority in relation to the tech giant’s $75B purchase of gaming firm Activision Blizzard (NASDAQ:ATVI).
In a statement released on Thursday, the Competition and Markets Authority said that the acquisition could “harm rivals,” including future gaming companies, by “refusing them access to Activision Blizzard games or providing access on much worse terms.”
It added that it has received evidence that Microsoft (NASDAQ:MSFT) could combine its strong position in “console, cloud, and PC operating systems” with Activision’s games – which include hit titles like Call of Duty and World of Warcraft – to damage competition in the growing market for cloud gaming services.
The CMA, which is now the first major regulator to raise red flags over the deal, warned Microsoft that the deal would face an investigation by an independent panel of experts if their worries are not addressed.
Microsoft president Brad Smith pledged to work with the CMA to resolve their concerns, saying that the company wants players to “have more access to games, not less.”
Outside of the U.K., the deal also faces scrutiny from the European Commission. According to media reports, EU antitrust regulators have been asking Microsoft’s rivals for their input on the transaction, but have yet to formally speak out on the matter.
In the U.S., the Federal Trade Commission has not officially commented on the deal either.
