hometechnology NewsMicrosoft’s $70 billion Activision Blizzard bid runs into regulatory storm

Microsoft’s $70-billion Activision Blizzard bid runs into regulatory storm

The UK’s Competition and Markets Authority (CMA) says it’s “concerned that Microsoft’s anticipated purchase of Activision Blizzard could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services.” 

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By Vijay Anand  Sept 1, 2022 7:21:21 PM IST (Published)

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Microsoft’s $70-billion Activision Blizzard bid runs into regulatory storm
Microsoft, which made waves earlier this year with an eye-watering $68.7 billion deal to buy Activision Blizzard — the largest deal in gaming history — has run into choppy waters, with the United Kingdom’s antitrust regulator expressing concerns that this deal could lessen competition in the industry.

The tech giant, in response, is publicly pleading for the deal to go ahead.
The UK’s Competition and Markets Authority (CMA) says it’s “concerned that Microsoft’s anticipated purchase of Activision Blizzard could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services.”
The CMA said it will move a “phase 2 investigation” if Microsoft isn’t able to answer its concerns within five working days.
According to The Verge, a phase 2 investigation “will see an independent panel examine Microsoft’s deal in more detail”, and whether control over mega franchises like Call of Duty and World of Warcraft will harm rivals. In response, Microsoft Gaming CEO and head of Xbox, Phil Spencer, took to the internet to clarify the company’s stance. blog post today.
In a blog post, Spencer said, “We’ve heard that this deal might take franchises like Call of Duty away from the places where people currently play them. That’s why, as we’ve said before, we are committed to making the same version of Call of Duty available on PlayStation on the same day the game launches elsewhere.”
Further, Microsoft President Brad Smith said, “We’re ready to work with the CMA on next steps and address any of its concerns. Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.”
While the United States Federal Trade Commission, the CMA, and the European Commission are still looking into the deal, Saudi Arabia last month gave it the green light.
“We will continue to engage with regulators with a spirit of transparency and openness as they review this acquisition. We respect and welcome the hard questions that are being asked. The gaming industry today is robust and dynamic. Industry leaders, including Tencent and Sony, continue to expand their deep and extensive libraries of games as well as other entertainment brands and franchises, which are enjoyed by players everywhere. We believe that a thorough review will show that the combination of Microsoft and Activision Blizzard will benefit the industry and players,” Spencer said.

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