The UK Competition and Markets Authority, CMA in its initials in English, has expressed concern about the fact that the Microsoft’s acquisition of Activision-Blizzard could “harm rivals”.
Possible harm to rivals is one of the clearest conclusions the CMA has reached after finishing its Phase 1 investigation into the operation that would transform Activision-Blizzard into a Microsoft subsidiary. In the document published by the antitrust authority you can read things like the following:
“The Activision-Blizzard acquisition would significantly expand Microsoft’s proprietary game library, adding some of the world’s best-selling and best-selling franchises, including Call of Duty, World of Warcraft and Candy Crush. The CMA is concerned that having full control over this powerful catalogue, especially in light of Microsoft’s already strong position in game consoles, operating systems and cloud infrastructure, could result in Microsoft harming consumers by affecting Sony’s ability to competeMicrosoft’s closest gaming rival, as well as that of other existing rivals and potential new entrants that could spark healthy competition through innovative multi-game subscriptions and cloud gaming services.”
“The CMA believes that the merger could allow Microsoft to create Activision-Blizzard content, including Call of Duty, exclusive to Xbox or Game Pass, or downgrade your rivals’ access to Activision-Blizzard content, for example by delaying releases or imposing license price increases.”
In short, it seems that the purchase of Activision-Blizzard by Microsoft, at least for now, does not seem to please the CMA too much, it can even be inferred that the antitrust entity sees that the operation could be aimed at trying to harm a competition that, at least from Sony, has responded by doing three quarters of the same.
The two companies now have until September 8 to address the concerns raised by the CMA, which has concluded in Phase 1 of its investigation that the merger process may result “in a substantial lessening of competition within one or more markets in the United Kingdom”. In case of not responding, the CMA will proceed to do a more in-depth investigation in Phase 2 to “reach a decision that is in accordance with the interests of players and companies in the United Kingdom”.
Activision-Blizzard has come to the fore to say that what is done by the CMA is a normal part of the process, but, seeing what is stated in the conclusions of Phase 1, companies are going to have to make a lot of effort to make the regulatory entity change your mind, which on the other hand is not impossible.
At this point, it is worth remembering that it was the CMA itself that began to question NVIDIA’s acquisition of ARM. Ten months after the reservations shown by the British authority, the green giant withdrew from the operation, although during that period an investigation by the European Union and a lawsuit by the US FTC were added to block the purchase process.
We will see how the purchase of Activision-Blizzard by Microsoft ends, but what is clear is that the process has not started off on the right foot before the UK antitrust entity.
