Microsoft's buyout of Activision Blizzard "could lead to competition concerns" say UK regulators

rockpapershotgun.com:

Further investigation of Microsoft’s $68.7 billion takeover of Activision Blizzard is needed by the UK’s competition regulator, a statement on the government’s website confirmed today. The Competition and Markets Authority (CMA) began the preliminary stage of their investigation at the beginning of July, with a deadline set for September 1st. That initial stage of investigation found that the deal could “substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services”.

“Following our Phase 1 investigation, we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming,” Sorcha O’Carroll, Senior Director of Mergers at the CMA, said. Microsoft have already been through this with the New Zealand Commerce Commission back in June.

Evidence on the potential effects of combining Activision Blizzard’s products with Microsoft’s console, cloud and PC businesses had been provided to the first phase of the CMA’s investigation, which they felt could damage competition in the developing cloud gaming market. Microsoft and Activision Blizzard now have five working days to address the CMA’s concerns. If the companies don’t manage to do that then the deal will be referred for a second phase investigation by an independent panel of experts. They’ll engage more with third-parties and have powers to gather internal documents.

Microsoft Gaming’s CEO Phil Spencer has responded publicly to the CMA’s decision with a statement titled “gaming for everyone, everywhere”. Spencer acknowledged that Microsoft intend to bring