Half of Xbox Rivals Concerned with Activision Blizzard Deal, Regulator Says
The United Kingdom's Competition and Markets Authority states that half of the Activision Blizzard competitors it talked to were «concerned» regarding its acquisition by Microsoft. The CMA is reaching the end of its Phase 2 investigation into Microsoft's acquisition of Activision Blizzard and the situation isn't great for Xbox. While the public may not see Xbox ownership of Call of Duty to be particularly harmful, Activision Blizzard's competitors seem to disagree.
In September 2022, the CMA concluded its Phase 1 exploration of the Activision Blizzard acquisition by calling for an in-depth investigation due to its potential for lessening competition in the United Kingdom. That Phase 2 investigation recently reached a provisional conclusion, stating it found competition concerns. Before the CMA delivers its final conclusion, Microsoft will have an opportunity to respond and negotiate, which it will need to in order to shift the CMA away from blocking the acquisition.
Microsoft Likely to Complete Activision Blizzard Acquisition, Analysts Say
As part of the materials the CMA has now shared publicly regarding its Phase 2 investigation into the Activision Blizzard acquisition, its shared a «Summary of third party calls» document. This document details conversations with six unnamed third parties, each described as similarly positioned competitors to Activision Blizzard. Of the six, three of these third parties alleged that Microsoft's acquisition of Activision Blizzard would have a negative impact on competition.
As for what «negative impact on competition means,» a specific answer isn't available. A general description is written as «affording Microsoft the ability and incentive to foreclose potential and existing rivals in the
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