UK government concerned by Microsoft's Activision Blizzard acquisition

gamesradar.com:

The UK government has indicated the Activision Blizzard acquisition by Microsoft could lead to "competition concerns."

That's according to a new statement (opens in new tab), published earlier today on September 1 by the UK's Competition and Markets Authority, the government agency said it's "concerned that Microsoft’s anticipated purchase of Activision Blizzard could substantially lessen competition in gaming consoles."

"The CMA is concerned that if Microsoft buys Activision Blizzard it could harm rivals, including recent and future entrants into gaming, by refusing them access to Activision Blizzard games or providing access on much worse terms," the statement from the CMA continues.

The CMA goes on to add that it's "received evidence about the potential impact of combining Activision Blizzard with Microsoft’s broader ecosystem." In short, the CMA is concerned that Microsoft could use Activision Blizzard to strengthen its positions across cloud, PC, and console gaming.

To this end, the CMA is inclined to initiate "Phase 2" of its operation. "Microsoft and Activision Blizzard now have 5 working days to submit proposals to address the CMA’s concerns. If suitable proposals are not submitted, the deal will be referred for a Phase 2 investigation," the statement continues.

If it does go ahead, this Phase 2 investigation from the CMA would allow a panel of experts to delve deeper into the risks already assessed in Phase 1 of the investigation. 

"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," said Sorcha