After months of scrutiny, the UK Competition and Markets Authority (CMA) has given the go-ahead for Microsoft’s $68.7 billion takeover of Call of Duty publisher Activision Blizzard. The CMA’s decision marks a major step towards the completion of the deal, which is also being reviewed by regulators in the US and the EU.
UK Regulator Satisfied with Microsoft’s Pledge to Preserve Competition
The CMA had initially raised concerns that the deal could harm competition in the gaming industry and limit access to Call of Duty for PlayStation players. However, Microsoft was able to convince the regulator that limiting access to the game would not make business sense and would be significantly loss-making. In its final report, the CMA concluded that the takeover would “not result in a substantial lessening of competition in relation to console gaming in the UK.”
Impact on Cloud Gaming Services Still Under Consideration
While the CMA has given its approval for the deal, it is still considering the impact it may have on cloud gaming services. The regulator has stated that it will “carefully consider the responses provided” before making a final decision.
Sony Reacts to the Decision
Sony, which owns the PlayStation brand, reacted angrily to the CMA’s decision, calling it “surprising, unprecedented, and irrational.” The company had previously expressed concerns that the deal could lead to Microsoft limiting access to Call of Duty for PlayStation players.
Microsoft’s Marketing Push
Microsoft has been promoting its acquisition of Activision Blizzard in various ways, including advertising on the London tube and waving around a 10-year Call of Duty contract for PlayStation to sign. The acquisition is expected to bring a significant boost to Microsoft’s gaming division, which has been lagging behind competitors Sony and Nintendo in recent years.
The deal is still subject to approval from regulators in the US and the EU, but Microsoft is hoping to finalize the acquisition by the end of the year. The acquisition of Activision Blizzard would make Microsoft one of the largest gaming companies in the world, with a portfolio of popular franchises including Call of Duty, World of Warcraft, and Candy Crush.
1. What is the UK Competition and Markets Authority (CMA) and what is its role in the Microsoft-Activision Blizzard deal?
2. What are the concerns that the CMA had regarding the Microsoft-Activision Blizzard deal?
3. Who is Brad Smith and what was his involvement in the Microsoft-PlayStation Call of Duty contract?
4. What is Call of Duty and who is its publisher?
5. What is Microsoft and what is its recent acquisition of Activision Blizzard?
