April 19, 2024

Microsoft’s $69 Billion Activision Deal Could Harm UK Gamers, Watchdog Finds

2 min read

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Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc. will harm levels of competition in the United kingdom gaming sector, Britain’s antitrust watchdog has provisionally observed.

The Opposition and Marketplaces Authority stated it had taken an first perspective that the offer could consequence in a sizeable lessening in competition, greater selling prices, much less selections or significantly less innovation for British isles avid gamers, in accordance to a assertion published Wednesday.

Microsoft very first declared the Activision offer past yr, looking to insert blockbuster game titles like Get in touch with of Responsibility to a organization that previously consists of the Xbox console, the Halo franchise and Minecraft earth-making program. But the tie-up has fallen foul of worldwide regulators who fear that Microsoft could make it tougher for rival platforms to get unfettered accessibility to Activision’s most popular titles.

The CMA could now question Microsoft for treatments to apparent the offer.


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Source hyperlink The UK’s Competition and Markets Authority (CMA) has released a report highlighting that Microsoft’s proposed $69 billion (£55.55 billion) acquisition of US game publisher, Activision Blizzard, could affect UK gamers detrimentally.

The CMA, who investigate such mergers to ensure that people in the UK can enjoy fair competition and prices, found that the deal “raises competition concerns in relation to PC gaming”.

Their report stated that competition between market giants Microsoft, who are the makers of Xbox, and Sony, who are the makers of Playstation, is essential for ensuring a variety of games, services and hardware at affordable prices.

It reads: “For example, if Microsoft and Sony, the two console manufacturers, were to collude then consumers are likely to be worse off – there could be less choice and the prices they pay could be higher.”

Activision Blizzard’s portfolio includes numerous popular video game franchises, such as Call of Duty, World of Warcraft and Candy Crush. As such, their acquisition by Microsoft would give them a monopoly in certain areas of the gaming market.

The CMA has not taken any further action yet, but is inviting people to submit their views on the proposed acquisition.

Microsoft responded to the CMA’s statement by highlighting the potential for “game-changing innovations” for both players and game publishers, with new ways to play and create games being made available at low prices.

However, with the CMA’s report in action, and until further investigation is done, UK gamers must be aware of the risks that Microsoft and Activision’s deal could bring to their gaming experience.