In new provisional findings,
the U.K.'s competition regulator says Microsoft's $69B purchase of
Activision Blizzard could stifle competition in cloud and console gaming
and ultimately harm gamers.
The U.K. Competitive Markets Authority (CMA) argues that the deal could
lead to fewer gaming choices, higher prices, and less innovation for
millions of players.
- The findings stem from the CMA's second-phase investigation into the mega-deal that was launched in September.
- In
a provisional report released today, the CMA says the deal could weaken
the important rivalry between Microsoft’s Xbox console and Sony’s rival
PlayStation.
- For example, Microsoft could make Activision
Blizzard's "Call of Duty" games exclusive to only Xbox and its own cloud
service, and/or limit certain features on PlayStation.
- Even a
slight increase in Microsoft's position could "substantially reduce
competition" to the detriment of cloud gamers, the CMA said.
- In response, Microsoft said it's already committed to "easily enforceable solutions that address the CMA’s concerns."
- The CMA said it's open to so-called "structural remedies" to address its concerns.
- This might include Microsoft's spinning off the "Call of Duty" brand or separating Activision from Blizzard.
- The U.K. agency is now accepting feedback from parties before issuing a final decision in April.
- Activision
Blizzard's other popular franchises include World of Warcraft, Diablo,
Overwatch, and Candy Crush, the latter of which falls under its King subsidiary.
