Microsoft Activision Deal Could Bring Harm To UK Gaming Community, Rules Regulator
deadline.comMicrosoft’s proposed $69B acquisition of Activision could bring harm to the UK’s 45M-strong gaming community, the nation’s competition body has ruled.
In a provisional finding delivered in the past hour, the UK’s Competition and Markets Authority (CMA) said that Microsoft “buying one of the world’s most important game publishers would reinforce [its] strong position and substantially reduce the competition that Microsoft would otherwise face in the cloud gaming market in the UK.” Microsoft already accounts for an estimated 60% to 70% of global cloud gaming services, said the ruling, and corners the market in other ways via its ownership of Xbox, Windows and Azure.
A small number of Activision’s flagship games such as Call of Duty play an important role in driving competition between consoles, added the CMA, which said Xbox and Playstation’s competition would “weaken competition” and “in turn harm UK gamers.” “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,” said Martin Coleman, who chaired the CMA investigation.
Microsoft floated the $69B deal around a year ago and, while antitrust-buster FTC plans to challenge in court, both its Vice Chair and President Brad Smith and Activision CEO Bobby Kotick have recently said they’re confident the move will close.
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