UK competition watchdog to investigate Microsoft's acquisition of Activision Blizzard

pcgamer.com:

The year's biggest news so far has been Microsoft's proposed takeover of Activision Blizzard, in a deal that could be worth $68.7 billion(opens in new tab). Activision Blizzard's shareholders have approved the deal(opens in new tab), but due to its sheer size (this would be the biggest acquisition in the industry's history by some considerable distance) is attracting the attention of regulators worldwide.

The acquisition is currently being investigated by the US Federal Trade Commission(opens in new tab), and now the UK's equivalent body has followed suit. The UK's Competition and Markets Authority, essentially an antitrust watchdog that drinks a bit more tea than the FTC, today announced it would be opening an investigation into the deal(opens in new tab).

This is not surprising news. Microsoft is, well, Microsoft: it may no longer be the single most valuable tech company in the world, but it's still up there. Activision Blizzard's series include the incredibly dominant and profitable Call of Duty, as well as Blizzard's all-star lineup of Diablo, Warcraft, and Starcraft, and that's before we even mention the all-encompassing reach of King's saccharinely sociopathic Candy Crush games.

This is also in the wider industry context of major platform holders looking to build subscription services. Which is why Microsoft has been at pains to point out it will keep Call of Duty on PlayStation: after all, as long as the deal goes through, such promises can be re-visited somewhere down the line.

The CMA's press release says the body «is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise