UK government blocks Microsofts proposed Activision purchase

News Summary

  • "Cloud gaming aside, the CMA seemed convinced that Microsoft's acquisition of the Call of Duty (CoD) franchise would not "substantially reduce competition" in the wider console gaming market.
  • Kyle Orland - Apr 26, 2023 11:51 am UTC In its long-awaited final report, the United Kingdom's Competition and Markets Authority said that Microsoft's proposed $69 billion acquisition of Activision would "result in a substantial lessening of competition" (SLC) in the supply of cloud-gaming services in the UK.
  • The regulator said that Microsoft "would not find it financially beneficial to make CoD exclusive to Xbox after the Merger and that providing a worse version on PlayStation "would not materially harm PlayStation’s ability to compete.
  • "By contrast, preventing the merger would effectively allow market forces to continue to operate and shape the development of cloud gaming without this regulatory intervention.
  • Those chances began to look worse after a February preliminary report saying that the deal "could result in higher prices, fewer choices, or less innovation for UK gamers" by "weakening the important rivalry between Xbox and PlayStation gaming consoles.
  • Microsoft's proposed standardized cloud-gaming licensing terms would also prevent those deals from being "determined by the dynamism and creativity of competition in the market" the CMA said.
Enlarge/ Taking a close look...26 with In its longawaited final report, the United Kingdoms Competition and Markets Authority said that Microsofts proposed $69 billion acquisition of Activisio [+5059 chars]