Xbox Facing Anti-Competition Probe In The UK Over Activision Deal, Phil Spencer Responds
The UK's Competition and Markets Authority has said it is «concerned» that Microsoft's proposal to buy Activision Blizzard could «substantially lessen competition» for sales of game consoles, subscription services, and cloud gaming networks. In response to this, Microsoft Gaming CEO Phil Spencer released a note in which he claimed Microsoft is not being anti-competitive.
In a press release, the CMA said is 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.»
Additionally, the CMA said it has seen «evidence» that if Microsoft and Activision Blizzard combine, it could create a system to «damage competition in the nascent market for cloud gaming services.» The CMA pointed out that Microsoft already has a popular console (Xbox), a major cloud platform (Azure), and the leading PC operating system (OS).
Due to its concerns, the CMA said it would consider conducting a «Phase 2 investigation.» In light of this, Microsoft and Activision Blizzard have five working days to respond to CMA's concerns, or else the CMA will launch its Phase 2 investigation.
Should it reach Phase 2, an independent panel of «experts» will look into the concerns outlined by the CMA.
CMA senior director of mergers Sorcha O'Carroll said, «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.»
O'Carroll added, «If our current concerns are not addressed, we plan to explore this deal
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