UK Regulator Calls For Another Investigation Into Microsoft’s Activison-Blizzard Deal

Caitlyn Taylor September 1st, 2022 – 1:34 PM

Microsoft’s game-changing acquisition of Activision-Blizzard continues to get the corporate in sizzling water. According to gamesindustry.biz, the UK’s Competition and Markets Authority (CMA) advisable that Microsoft’s acquisition ought to go beneath a second part of in-depth investigation earlier at the moment. In the CMA’s press release,  they expressed fears that the merger “…could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services.”

The UK Competition and Markets Authority determined to refer the Microsoft Activision/Blizzard deal to an in-depth probe attributable to issues concerning the potential impression of the acquisitionhttps://t.co/u6bDScNiWS pic.twitter.com/heIpJCNw1S

— Nibel (@Nibellion) September 1, 2022

CMA’s determination was finalized following the conclusion of their phase-1 investigation after a panel of chosen people reviewed paperwork from each corporations. CMA concluded that not solely may this merger hurt rivals throughout the gaming trade, however that they had additionally obtained “evidence about the potential impact of combining Activision Blizzard with Microsoft’s broader ecosystem.” The CMA is worried that Microsoft may leverage Xbox consoles, Azure a cloud platform), Windows OS and Activision-Blizzard’s video games “…to damage competition in the nascent market for cloud gaming services.” These findings cemented the CMA’s resolve in persevering with with their investigation.

Sorcha O’Carroll, Senior Director of Mergers on the CMA, estated the reasoning for the CMA’s determination and gave the next ultimatum on how this case may transfer ahead:

“If our current concerns are not addressed, we plan to explore this deal in an in-depth Phase 2 investigation to reach a decision that works in the interests of UK gamers and businesses. Phase 2 of the investigation, if it were to go through, would consist of an independent panel examining the deal in more depth, and evaluating the impact of competition following the merger in “a higher threshold than Phase 1.”

In response to the CMA Microsoft’s president and vice chair Brad Smith launched a letter to employees, detailing his willingness to associate with the investigations into the merger.

“…This week we heard from the United Kingdom, where we have more employees than anywhere except North America. We have entered the second phase of our review there, and we will continue to fully cooperate with the regulators there, and everywhere approvals are required.” mentioned Smith. “As our industry continues to see numerous companies investing aggressively in gaming, including many of the world’s largest technology and media companies, government regulators are taking appropriate and deliberate steps to better understand our industry and the growing competition from around the world…”

Following the letter Phil Spencer, CEO of Microsoft Gaming, launched a blog post commenting on Microsoft’s acquisition; restating Brad Smith’s name for his or her continued transparency.

“…We will continue to engage with regulators with a spirit of transparency and openness as they review this acquisition.” mentioned Spencer. “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…”