Microsoft accuses UK regulator of ‘adopting Sony’s complaints’ over Activision Blizzard deal
Microsoft has criticised the UK competition regulator’s decision to expand its inquiry into the corporation’s proposed acquisition of Activision Blizzard.
In September, the Competition and Markets Authority (CMA) said its inquiry into the $68.7 billion merger had officially been expanded to a second phase due to a number of antitrust concerns.
On Wednesday, the CMA detailed in full its reasoning for its concerns, including the impact of competition in the console, game streaming and subscription spaces.
Responding to the CMA’s decision, Microsoft has now called the regulator’s concerns “misplaced” and claimed that it “adopts Sony’s complaints without the appropriate level of critical review”.
“These unsupported theories of harm are not sufficient to justify a reference to Phase 2,” Microsoft said. “The suggestion that the incumbent market leader, with clear and enduring market power, could be foreclosed by the third largest provider as a result of losing access to one title is not credible,” it added.
“While Sony may not welcome increased competition, it has the ability to adapt and compete.”
The Xbox owner referenced Sony’s leading position in the console market, citing an install base of 150 million versus Xbox’s 63.7 million.
“Sony engages in conduct today which is reflective of its market power in console gaming, including increasing prices of its consoles without fear of losing market share,” it said, referencing recent PS5 price rises in some territories.
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Microsoft also noted Sony’s own recent acquisitions of companies such as Bungie and Haven, and claimed that as of 2021 there were over 280 first and third-party exclusive titles
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