Microsoft proposes remedies to appease UK regulator's concerns over Activision acquisition
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Microsoft has responded to the remedies suggested by the UK's Competition and Markets Authority after the regulator said changes would be needed before it could approve the proposed acquisition of Activision Blizzard.
The Xbox platform holder has detailed its own solutions, some of which are built around suggestions it has made throughout this process, claiming that these will address all of the regulator's concerns.
Sony's response to the CMA's proposed remedies has also been released, agreeing with the regulator's suggestions, expressing scepticism that Microsoft could reach an agreement that would address all concerns, and once again calling for the proposed acquisition to be blocked.
A significant portion of Microsoft's 33-page response objects to the CMA's suggestion that some of Activision Blizzard's businesses and properties be divested before the merger goes through.
Microsoft reiterated that these would be inappropriate, and that even a partial divestment would be "highly uncertain and impracticable."
The company said that, far from protecting competition, a divestment would actually have "severe adverse effects" in the games space because it would prevent Microsoft from "achieving its key strategic objective – namely building a mobile gaming business with sufficient scale in order to challenge Google and Apple."
This is because divesting the Activision segment of the business, as the CMA suggested, would see Microsoft lose access to Call of Duty Mobile and the upcoming Warzone Mobile, as well as other key Blizzard mobile games such as Diablo Immortal, Hearthstone and the currently-in-beta Warcraft Arclight Rumble.
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