Microsoft’s acquisition of Activision Blizzard causing concern to the UK regulator competition. The Competition and Markets Authority (CMA) has asked the two companies to ” justify this acquisition “.
Activision Blizzard and Microsoft must justify the takeover
A few days ago, the British competition authority raised concerns about Microsoft’s takeover of Call of Duty publisher Activision Blizzard for $68.7 billion. The CMA gives the two companies five days to propose solutions and explain why this takeover makes sense. This acquisition represents the largest ever merger in the gaming industry. According to the British authority, it could ” significantly reduce competition in game consoles “.
According to the CMA, Microsoft is already very well established in the video game market with Xbox, Azure and Windows OS “. After an investigation of this takeover, which made it possible to verify that the market for video games is not exposed to a weakening of supply and unfair competition, the UK regulator is asking both companies to submit proposals to address these concerns. If this is not the case, a panel of independent experts will be commissioned to investigate the risks further.
The American giant wants to be reassuring
According to Sorcha O’Carroll, Director of Mergers at CMA, “ we are concerned that Microsoft could use its control over games like Call of Duty and World of Warcraft “. Phil Spencer, head of games at Microsoft, assures that “ as we said before, we are committed to bringing the same version of Call of Duty to PlayStation and Xbox “. Microsoft promises to continue to allow users to play with each other on all platforms and all consoles.
The American giant wants to use the same approach as with Minecraft. Microsoft says Activision Blizzard’s Overwatch, Diablo and Call of Duty games will feature of course Microsoft’s Game Pass service. PlayStation owner Sony recently launched a Game Pass competitor called PlayStation Plus Premium. Although for now this is the offer does not match Xbox Game Pass Ultimate.