Microsoft's Activision Blizzard Merger Has Been Referred For Further Investigation In The UK
The deadline has passed, and Microsoft's huge buyout of Activision Blizzard has been referred for further investigation by the UK's Competition and Markets Authority (CMA). This is being done in order to determine if the merger could undermine competition in the video games market in the UK.
Previously, the UK watchdog had completed a 'Phase 1 investigation' with its conclusions stating that it was concerned over various consequences that the proposed merger could "harm rivals". The CMA then gave Microsoft the deadline of September 8 to address these concerns. Microsoft appears not have done so, with the result that the CMA now has to do its duty and refer the case for further investigation.
Related: Sony Buying Bungie Is Bad Too
The "in-depth investigation" will be carried out to determine if Microsoft's merger with Activision Blizzard could result in a "substantial lessening of competition" for games consoles and their digital storefronts, the availability of games through multi-game subscription services (think Game Pass/ PS Plus Premium), and the supply of cloud gaming services in the UK.
The CMA will investigate if the merger could harm competition and it will take a period until March 1, 2023 to do so. Since both Microsoft and Activision Blizzard are multinational corporations, the $68.7 billion deal is a complex process to see through, and needs to be approved by multiple governments. The full text of the CMA's recommendation can be read here.
In its conclusions, following its phase 1 investigation, the CMA referred to Microsoft's broader ecosystem and how folding in Activision Blizzard could affect the wider industry. It noted that Microsoft already had a leading games console in the Xbox, a leading cloud
Read more on thegamer.com
