The UK Competition and Markets Authority seems to be looking favorably on Microsoft’s possible purchase of Activision Blizzard, as it assured that the merger would not affect competition in the region. Read more here!
For more than a year we have followed the roundtrip of the acquisition of Activision Blizzard by Microsoft. However, after so many complaints, doubts and competition problems, it seems that the different market and competition control agencies in the world are giving in. This time we are talking about the UK Competition and Markets Authority (CMA), who issued an interim report stating that the purchase would not affect competition in the region.
Although in February the CMA had said that the purchase of Activision by Microsoft posed competition concerns, the authority continued to investigate and collect information on the case. Today the same entity public that “has come to the provisional conclusion that, overall, the transaction will not result in a material lessening of competition in relation to console gaming in the UK.”
One of the issues that most concerned Microsoft already sony was what would happen to call of duty. can be unique to Xbox? Does it suit you or not? Does it hurt other companies? Well, the CMA clarified this matter and said: “While the original CMA analysis indicated that this strategy (that CoD be exclusive to consoles Microsoft) would be profitable in most scenarios, the new data indicates that this strategy would generate significant losses in any plausible scenario.”
In addition to this, the CMA added: “The updated analysis now shows that it would not be commercially beneficial to Microsoft do what CoD be exclusive to Xbox after the agreement, but what Microsoft you will still have the incentive to continue making the game available on PlayStation”.
About this, martin colemanchair of the independent panel of experts conducting this investigation, said: “We have tentatively concluded that the merger will not result in a substantial decrease in competition in console gaming services because the cost to Microsoft to retain call of duty of PlayStation would outweigh any gain from taking such action.”
However, this is not all. The CMA clarified that today’s interim report only includes what is related to competition in the supply of consoles, but that it continues to investigate competition in the supply of cloud gaming services, an issue that concerns them.
To find out how this ends and what the CMA decides, we will have to wait until the final report, which will arrive on April 26, 2023. Although there is nothing confirmed, it seems that Microsoft the road is quite free. Let’s remember that recently rumors arose that the European Union would approve the purchase. It would only remain to see what the United States regulatory body says.