The UK’s Competition and Markets Authority (CMA) has raised concerns over Microsoft’s proposed $68.7 billion (£56.7 billion) acquisition of gaming giant Activision Blizzard, citing potential negative impacts on the gaming industry. In its preliminary findings, the CMA suggests that the deal could lead to higher prices, fewer choices, and reduced innovation for UK gamers.
The investigation, which has spanned five months, highlights worries that Microsoft’s takeover could strengthen its market position, hinder competition, and disrupt the long-standing rivalry between Microsoft’s Xbox console and Sony’s PlayStation. Activision Blizzard, the creator of popular gaming franchises such as Call of Duty, has been at the center of these concerns. Rivals fear that Microsoft’s control over Activision could limit their access to key titles, although Microsoft has denied these allegations.
The CMA’s findings indicate that acquiring one of the world’s leading game publishers could reinforce Microsoft’s dominance and significantly diminish competition in both the cloud gaming and console gaming markets in the UK. This concern is particularly relevant if Microsoft restricts access to Activision’s games on other platforms.
In response to these provisional concerns, the CMA has issued a notice of potential remedies to Microsoft and Activision Blizzard. The companies have been asked to respond by February 22, ahead of the final report’s publication on April 26.
Martin Coleman, chair of the independent panel leading the investigation, emphasized the significance of the gaming industry in the UK. “It’s been estimated that there are around 45 million gamers in the UK, and people in the UK spend more on gaming than any other form of entertainment, including music, movies, TV, and books,” Coleman noted.
He also highlighted the importance of competition in the gaming sector, saying, “Strong competition between Xbox and PlayStation has defined the console gaming market over the last 20 years. Exciting new developments in cloud gaming are giving gamers even more choice.”
As the deadline for responses approaches, all eyes are on Microsoft and Activision Blizzard to address the CMA’s concerns and propose solutions to maintain a competitive gaming landscape in the UK.
