The Competition and Markets Authority (CMA) of the United Kingdom has expressed opposition to Microsoft’s planned acquisition of video game company Activision Blizzard.
The CMA’s preliminary conclusion was that it would result in higher costs, fewer options, and less innovation.
In exchange for $69 billion (£57 billion), Microsoft would purchase popular games such as Call of Duty and Candy Crush.
Microsoft stated that it would “find answers to the CMA’s concerns.”
Microsoft vice-president and deputy general counsel Rima Alaily stated, “Our pledge to offer 100% equal access to Call of Duty to Sony, Nintendo, Steam, and others on a long-term basis preserves the deal’s benefits for gamers and developers and encourages market competition.”
75% of respondents to the CMA’s public survey believe that this deal is advantageous to UK gaming competition,” she said.
Activision stated in a statement that the conclusions were tentative and that all parties would have a chance to respond.
The creator of Call of Duty added, “we hope that between now and April, we will be able to help the CMA better understand our industry” to assist the regulator in “achieving their stated purpose” of fostering an environment where “fair-dealing businesses can develop and flourish.”
Never been dealt like this
Steffan Powell, says: “Microsoft’s hopes of acquiring Activision Blizzard are not dashed, but the decision is not what business executives desired.
In the next weeks, there will be a great deal of back-and-forth between lawyers and government officials as Microsoft argues that this contract is beneficial for UK gamers and not restricted as this first judgment suggests.
“There has never been such scrutiny of a sale in the history of gaming, but there has also never been a £57 billion deal like this.”
Microsoft has not had a fantastic week thus far.
Google introduced Bard, its competitor, 24 hours before Microsoft revealed ChatGPT’s addition to Bing.
The UK’s markets authority has ruled that the tech giant’s ambition to acquire one of the world’s top game publishers could be detrimental to the gaming industry as a whole.
With a price tag of £57 billion, this concept is eye-popping costly.
The CMA suggests Activision Blizzard sell its Call of Duty franchise.
This would decrease the value of the transaction for Microsoft, but it may appease Sony, which controls the PlayStation platform and is vehemently opposed to the thought of a competitor acquiring all the top game developers.
Microsoft says that it will not make existing titles exclusive to Xbox.
It’s worth mentioning that Activision Blizzard also has a mobile game that frequently ranks at the top of most-played rankings around the world: the modest but massive Candy Crush.
