UK competition regulator finds Microsoft-Activision deal ‘could lead to competition concerns’

The UK’s antitrust regulator is concerned that Microsoft’s blockbuster purchase of Activision Blizzard could create a monopoly in the nascent cloud gaming space. The Competition and Markets Authority (CMA), which start investigating the deal back in July, says they are still not reassured by the promises Microsoft has made to close the deal. There is a sense that, once Activision is part of Microsoft, the Xbox maker can exercise “its control over popular games like Call of Duty and World of Warcraft“To “harm an opponent” by knocking them out of access to popular titles. Microsoft has publicly committed not to hoard monopolies, (and say that Actiblizz’s library isn’t everything, anyway) but sweet words have yet to appease the officials.

In a statement, they said they would give Microsoft and Activision five days to submit proposals addressing their concerns. However, if that doesn’t pass the gathering, the office will open a lengthy “Phase 2” investigation involving an independent panel to look into the deal in-depth. than. That would likely delay any completion of the deal, which would then only be rubber stamped if regulators believe the deal will not cause “significantly reduced competition.” It is likely that, whatever happens, Microsoft will need to commit not to use its growing influence to hurt other companies in the field by depriving them of key franchises. surname.

Microsoft game director Phil Spencer has answered to inform, to confirm in advance pledge not to withdraw Call of Duty from PlayStation, for example. Spencer points to the cross-platform appeal of Minecraft, a title Microsoft purchased in 2014, as proof of the company’s goodwill. Activision CEO Bobby Kotick publish one open letter with employees, saying that the company will “cooperate fully” with regulators who are taking “appropriate” steps to ensure that there is no risk to competition.