Competition and Markets Authority isn’t buying promises of equal access to Call of Duty
The UK’s competition watchdog is throwing more water on Microsoft’s controversial $69 billion bid for Activision Blizzard, saying an acquisition could hit gamers with higher prices and fewer choices.
The Competition and Markets Authority (CMA) said Wednesday that after a five-month investigation, it is « provisionally » concluding that the deal would hurt competition and innovation and thus hurt those citizens who play Call of Duty and other popular games.
According to Martin Coleman, chair of the independent panel of experts that conducted the « Phase 2 » investigation, about 45 million UK gamers as well as other people in the country spend more on gaming than on music, movies, TV or books.
« Strong competition between Xbox and PlayStation has defined the console gaming market over the last 20 years, » Coleman said in a statement. « Exciting new developments in cloud gaming are giving gamers even more choice. Our job is to make sure that UK gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation.
« We have provisionally found that this may be the case here. »
The CMA sent Microsoft and Activision an explanation of its concerns and how they might be resolved. It also said both can submit their views and alternative proposals.
The authority’s finding is another smack in the head to Microsoft as it tries to navigate already roiling regulatory waters. EU agencies are poring over the proposed acquisition and the US Federal Trade Commission is suing Microsoft to block the deal.
