UK competition watchdog’s Xbox and Activision merger inquiry ‘could be expanded’
It’s being reported that the UK competition regulator’s inquiry into Microsoft‘s proposed acquisition of Activision Blizzard may be expanded.
The Competition and Markets Authority (CMA) confirmed last month that it had opened an investigation into the $68.7 billion deal—the game industry’s biggest ever by far—to determine whether it’s a fair one.
The CMA has been gathering feedback from third parties with an interest in the proposed deal, and a deadline of September 1 has officially been set for it to give its initial decision on the matter.
According to Seeking Alpha, traders citing a Capitol Forum report claim the CMA has held an “issues meeting” with Microsoft to express concerns over the deal, which could result in the regulator expanding its review.
VGC has contacted the CMA for comment on these claims.
In a Bloomberg interview published earlier this week, Xbox boss Phil Spencer expressed confidence in the progress Microsoft is making towards its planned acquisition of Activision Blizzard – although he admitted he was in uncharted territory given the scale of the deal.
The proposed acquisition is being scrutinised by multiple regulators amid concerns about potential antitrust issues during a time of increasing consolidation in the gaming industry.
Spencer told Bloomberg: “I feel good about the progress that we’ve been making, but I go into the process supportive of people who maybe aren’t as close to the gaming industry asking good, hard questions about ‘what is our intent? What does this mean? If you play it out over five years, is this constricting a market? Is it growing a market?’
“I’ve never done a 70 billion-dollar deal, so I don’t know what my confidence means,” he added. “I will say the discussions we’ve been having
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