The CMA (Competition and Markets Authority) recently launched an antitrust investigation into Microsoft’s alleged $68.7 billion acquisition of US publisher Activision Blizzard.
The UK Competition and Markets Authority says it is investigating whether the merger between Microsoft and Activision Blizzard could result in a significant reduction in competition in one or more markets for goods or services in the UK. It set September 1 as the deadline for deciding whether to move the proposed merger into phase 2, which could allow the parties to discuss and possibly agree on remedies for any identified competitive harm.
We have launched an investigation into the alleged #Microsoft @ATVI_AB merger.
🔍 We will look at whether gamers can end up paying higher prices for less choice or lower quality.
Visit case page: https://t.co/boZhWJ6nCy #Gaming #Activision pic.twitter.com/nfGindvder
— Competition and Markets Authority (@CMAgovUK) July 6, 2022
“We expect and believe it is appropriate for regulators to take a close look at this acquisition,”said Lisa Tanzi, vice president and general counsel at Microsoft. “It was clear to us how we plan to run our gaming business and why we believe the deal will benefit gamers, developers and the industry. We are committed to answering questions from regulators and truly believe that a thorough review will complete a deal with broad confidence and have a positive impact on competition. We remain confident that the deal will close in fiscal 2023 as originally planned.”
Microsoft didn’t gain anything from the acquisition of Activision Blizzard
With Lina Khan and the FTC on their backs, Microsoft launched a global charm offensive to head off regulatory trouble. Last February, the company announced several commitments that would apply to its gaming business to dispel any concerns that its position as a “gatekeeper”would give it anti-competitive power over game publishers or software developers. World.
Last month, Activision Blizzard said it was ready to negotiate with unions after Microsoft said it would be more receptive to them. Prior to Microsoft’s announcement of the deal, Activision Blizzard was embroiled in a scandal in which the company was accused of allowing a widespread “fraternity boy”corporate culture to flourish, which allegedly resulted in female employees being constantly sexually harassed and paid less than men.