Microsoft/Activision Blizzard Merger Raises Cloud Gaming Concerns for New Zealand Regulator

wccftech.com:

Today, following a series of delays, the New Zealand regulator (simply called the Commerce Commission) published a Statement of Issues on the Microsoft/Activision Blizzard merger.  The Commerce Commission expressed concerns regarding the potential negative effects on competition in the cloud gaming market.

We are concerned that these effects may arise as a result of the merged entity either partially or fully foreclosing its rivals in cloud gaming, such as Sony or NVIDIA, from accessing certain Activision content, and in particular the game Call of Duty (CoD), to the detriment of competition in cloud gaming.

The New Zealand regulator is also still considering potential problems for the console gaming market following Microsoft's $68.7 billion acquisition.

We are also continuing to consider whether the Proposed Transaction would substantially lessen competition due to the merged entity either partially or fully foreclosing its rivals in gaming consoles, in particular Sony, from accessing certain Activision content, to the detriment of competition in the supply of video game consoles. 

If Activision’s game titles are sufficiently important to driving sales of cloud gaming services or video game consoles, then this could result in the merged entity having both incentive and ability to foreclose rivals’ access to this content, weakening their ability to compete.

To clarify, the Commerce Commission hasn't finalized its decision yet. In the Statement of Issues, the regulator requested submissions and evidence from Microsoft, Activision, and other interested parties. These will have to be submitted by July 4th, while the final verdict will be rendered by July 17th, following a time extension that the Commerce Commission