The Markets and Competition Authority (CMA) of the United Kingdom has reached provisional conclusions about the purchase for 69 billion dollars of Activision Blizzard by Microsoft.
According to this important entity, this transaction “could result in a substantial decrease in competition, higher prices and less options and innovation for players in the country.”
previous conclusions
The answer of the CMA It is one of the most important in the world for this purchase to be carried out, only after the Federal Trade Commission of the United States.
The British agency suggested a series of structural remedies that include the sale of the business associated with Call of Duty, Activision’s part of the business or the total blocking of the merger. The CMA also said it would consider behavioral remedies that would promise rivals can access Call of Dutyalthough he noted concerns about his ability to manage them.
“Our job is to make sure that the players of the United Kingdom Don’t get caught in the crossfire of global deals that, over time, could harm competition and result in higher prices, fewer choices, or less innovation. We have tentatively found that this may be the case here,” said Martin Coleman, chair of the independent panel of experts conducting this Phase 2 investigation.
The CMA has asked Microsoft to respond on how you can address your concerns by February 22. The legal deadline for the CMA release a final report is set for April 26, though the agency previously said it hoped to complete the investigation before then.
Microsoft fights back
The investigation of the control body of the United Kingdom has focused on whether the deal will allow Microsoft shut down rival console gaming platforms and cloud gaming service providers.
“We are committed to offering effective and easy-to-apply solutions that address the concerns of the CMAsaid Rima Alaily, corporate vice president and deputy general counsel at Microsoft. “Our commitment to grant long-term 100% equitable access to Call of Duty to Sony, Nintendo, Steam, and others preserves the benefits of the agreement for gamers and developers and increases competition in the marketplace.”
“The steps of the European Commission and the CMA they are a normal part of your evaluation process. It opens the door to discuss various commitments Microsoft can make to allay concerns as part of ongoing dialogue and engagement with regulators,” Activision CEO Bobby Kotick said in an email to employees seen by Bloomberg.
Sony and PlayStation have been against this purchase, arguing that “it is a game changer that represents a threat to the industry.”
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