UK competition watchdog moves to second phase of Microsoft Activision deal investigation
The UK's Competition and Markets Authority (CMA) has proceeded to the second phase of its investigation into the impact of Microsoft buying Activision Blizzard.
The first phase of the body's inquiries was detailed in a report released yesterday (Thursday, September 1st), which said that there was "a realistic prospect of a substantial lessening of competition" within the video games space as a result of the acquisition being completed. This initial investigation was announced in July.
As a result, a second and deeper investigation will be taking place unless Microsoft and Activision Blizzard can do something to address the CMA's concerns over competition being harmed.
The organisation reckons that there are two issues with the deal. The first is that Microsoft could be "withholding or degrading" about Activision Blizzard's content, meaning that there's a worry it will be exclusive the Xbox platforms. The other issue is that Microsoft could use Activision Blizzard's content to "raise barriers to entry and foreclose rivals in cloud gaming services."
These are both concerns that have been raised within the industry already. Microsoft and Activision Blizzard have until September 8th to show the CMA that the deal won't impact competition within the market. If this isn't done, a second phase of the investigation will take place.
"We’re ready to work with the CMA on next steps and address any of its concerns," Microsoft president and vice chair Brad Smith said.
"Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less."
In a letter to shareholders on
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