Microsoft announced its acquisition of Activision Blizzard in January, reportedly spending an incredible $68.7 billion on the industry-shaking buyout. However, the deal hasn’t evaded regulatory scrutiny, with the FTC investigating the company for insider trading. There were also questions over whether the regulatory agency might block the acquisition under US anti-trust legislation.
American regulators aren’t the only ones raising their eyebrows at Microsoft’s massive Activision Blizzard buyout. The UK’s Competition and Markets Authority recently ruled that the merger may have serious consequences for market competition in the United Kingdom. This may present a severe risk for Microsoft and Activision Blizzard’s deal unless both companies can convince the CMA that these concerns are unfounded.
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CMA’s September 1 ruling warned that the merger “may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom.” The agency cited concerns that the deal could result in Microsoft “withholding or degrading” Activision Blizzard’s content on non-Microsoft platforms. The agency also warned that Microsoft’s exclusive ownership of Activision Blizzard could give its Cloud Gaming service too much of an advantage over competitors and allow Xbox to shut rivals out of the market.
British regulators also highlighted their concerns over Microsoft’s control over Activision Blizzard franchises like Call of Duty, Candy Crush, and World of Warcraft. The CMA believes that Microsoft could withhold these titles from rival platforms like PlayStation, locking competitors like Sony out of a significant
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