Microsoft’s Activision acquisition deal, after UK regulator warns of harm to gamers
Microsoft’s Activision acquisition deal, after UK regulator warns of harm to gamers, Threats to Microsoft’s Activision purchase originate from concerns expressed by a UK regulator. The Competition and Markets Authority (CMA) in the United Kingdom has renewed its worries over Microsoft’s proposed acquisition of Activision Blizzard, claiming this time that it might negatively impact UK gamers.
In Washington DC (Via CNN)
“In a $69 billion deal, Microsoft acquired Activision. The United Kingdom on Wednesday issued the latest challenge to the tech giant’s blockbuster purchase, claiming that if Blizzard allowed Microsoft to confine Activision’s video games to proprietary platforms like Xbox, it might hinder competition.”
The CMA has suggested that Microsoft relinquish some of its Call of Duty assets in order to get regulatory approval for the merger. On April 26th, a decision must be made.
Microsoft’s use of Activision’s exclusive games is another way the CMA fears the company will hurt gaming competition. The Competition and Markets Authority has said that it has “provisionally ruled that diminishing competition by limiting the access that other platforms have to Activision’s games might considerably decrease competition between Xbox and PlayStation in the UK, in turn affecting UK gamers.“
The CMA has provided Microsoft with a list of potential remedies it might pursue in order to get UK antitrust clearance for its purchase of Activision Blizzard. Structured solutions are proposed, one of which is the sale of Activision Blizzard’s Call of Duty division. The Activision division, as well as the Activision and Blizzard divisions, which include the Call of Duty, World of Warcraft, and other game-related businesses, might be sold off as a separate entity.
Does Microsoft buy Activision mean for gamers?
Microsoft would purchase Call of Duty, World of Warcraft, and Candy Crush. Xbox’s Phil Spencer will lead Microsoft’s new “Gaming” division.It will also hurt gamers and undermine competitiveness.
Microsoft’s “commitment to grant long-term 100% equal access to Call of Duty to Sony, Nintendo, Steam, and others,” as stated by Corporate Vice President and Deputy General Rima Alaily in a statement provided to Ars Technica, “preserves the benefits to gamers and developers and increases competition in the market.” That indicates “In ten years, we will be on equal footing. Content, and cost. About specifics. With regard to quality. In terms of game-ability, “And so, the statement carried on.
The CMA noted in a separate study on possible remedies that Microsoft divesting major portions of Activision Blizzard King may be a condition of its acceptance of the merger. To do so may require Microsoft to spin out Activision or its Call of Duty division, or it could need the creation of a new company combining Activision and Blizzard (the last option leaving only mobile-focused King as part of the deal).
On December 8
The FTC is suing Microsoft to stop the purchase, according to a December 8 news release. The FTC seeks to stop Microsoft from “gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.” Gamendly has further data concerning Microsoft’s takeover of Activision Blizzard.
“We have been dedicated from Day One to resolving competition issues,” said Microsoft vice president and Chairman Brad Smith. We desire a peaceful outcome, but we’re confident in our position and want to dispute it in court.
We’ll keep you updated on Microsoft’s big acquisition, including news that speculates on its repercussions on the gaming industry, both good and bad. Stay updated with Gamendly!