UK watchdog announces in-depth investigation of Microsoft's Activision Blizzard deal
pcgamer.comThe UK's Competition and Markets Authority (CMA) has announced that, following an initial investigation, it is prepared to open an in-depth 'Phase 2' enquiry into Microsoft's $68.7 billion deal to acquire Activision Blizzard. The CMA is the UK's anti-trust regulator, responsible for maintaining the competitive integrity of the markets, and could be a significant hurdle for the acquisition if its concerns are not addressed.
The opening of the second stage of the investigation is not a done deal: the CMA may decide not to proceed if Microsoft and Activision Blizzard provide sufficient undertakings before the deadline of September 8. An undertaking is a legally binding agreement wherein Microsoft could choose to say to the CMA, for example, «Call of Duty will be available on PlayStation for the next 30 years.»
That's the kind of thing that the CMA is thinking about. In a press release accompanying the full report the organisation says it is concerned that the deal «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.»
Another concern is adding Activision Blizzard to Microsoft's broader gaming ecosystem, meaning that incorporating its wide range of titles into, say, Game Pass or a streaming offer could be unfair to any smaller competitors. The CMA reckons this has the potential to «damage competition in the nascent market for cloud gaming services.»
Microsoft and Activision Blizzard now have a short window in which to address the issues raised, and if they don't satisfy the regulator the deal will be referred for a Phase 2 investigation. This involves assembling an independent expert panel to probe the issues
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