Microsoft’s $69-billion takeover bid for Activision Blizzard received a boost in the UK as the country’s competition regulator narrowed the scope of its probe to cloud gaming. The UK’s Competition and Markets Authority (CMA) has now concluded that the transaction will not substantially lessen competition in relation to console gaming in the UK, citing new evidence from a consultation with interested parties. The CMA’s investigation will now focus only on cloud gaming. Prior analysis from the CMA assumed that Microsoft would seek to make “Call of Duty” exclusive to the Xbox console, at the expense of Sony’s PlayStation. However, the CMA has now concluded that “this strategy would be significantly loss-making under any plausible scenario.” Microsoft welcomed the news and offered to work with regulators to resolve outstanding concerns. Friday’s news comes one week after Microsoft offered formal commitments to the European Union as it bids to persuade the bloc to approve the deal.
Microsoft’s Bid for Activision Blizzard Gets a Boost in the UK
Microsoft’s $69-billion takeover bid for Activision Blizzard has received a boost in the UK after the country’s competition regulator, the Competition and Markets Authority (CMA), narrowed the scope of its probe to cloud gaming. Xbox-owner Microsoft launched its bid to create the world’s third-biggest gaming company by revenue with the takeover of Activision, owner of hit games “Candy Crush” and “Call of Duty,” triggering European antitrust concerns.
In provisional findings last month, the CMA had stated that the deal could hurt competition in cloud gaming and gaming consoles. However, on Friday, it declared that the “transaction will not result in a substantial lessening of competition in relation to console gaming in the UK,” citing new evidence from a consultation with interested parties.
As a result, the CMA’s investigation will now focus only on cloud gaming. Prior analysis from the CMA assumed that Microsoft would seek to make “Call of Duty” exclusive to the Xbox console, at the expense of Sony’s PlayStation. However, the CMA has now concluded that “this strategy would be significantly loss-making under any plausible scenario.”
Microsoft welcomed the news and offered to work with regulators to resolve outstanding concerns. Prior to Friday’s update, Sony requested that the CMA block the transaction on grounds it could give Microsoft the ability to “foreclose its rivals” from the Call of Duty franchise.
Friday’s news comes one week after Microsoft offered formal commitments to the European Union as it bids to persuade the bloc to approve the deal.
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