The U.K.'s competition regulator has 'provisionally concluded' that Microsoft's $69 billion bid to buy Activision Blizzard would harm competition in gaming.
The U.K.'s competition regulator has "provisionally concluded" that Microsoft's $69 billionOpposition to the deal by the Competitive Markets Authority , which could be finalized in April, could sink the deal. It suggested the deal should be blocked — or permitted if Activision Blizzard divests itself of its Call of Duty division.are the result of a Phase 2 investigation that the group uses after it determines that a merger or acquisition has the potential to harm competition.
The CMA says Microsoft's purchase of Activision, which would give it control of Activision , Blizzard and King "could result in higher prices, fewer choices, or less innovation for U.K. gamers." As it did in preliminary filings, it said that the immense popularity of Call of Duty could be leveraged by Microsoft to harm the competition between Microsoft's Xbox and Sony's PlayStation. It also said it could give Microsoft unfair dominance in cloud-based gaming, where Microsoft is already the leader.
The CMA's concerns are premised on the idea that Microsoft could take Call of Duty exclusive, removing it from PlayStation or blocking it from running on competing cloud-based platforms. Microsoft has previously promised to offer Call of Duty to rival platforms for at least another 10 years, but the CMA has said that contractual promises
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