Microsoft’s proposed multi-billion pound acquisition of video game maker Activision Blizzard will be investigated by UK competition regulators.
The UK Competitive Markets Authority (CMA) considers whether the $ 68.7 billion (£ 57.7 billion) merger announced in January could negatively impact competition and lead to “worse results for consumers.” Said.
US gaming giant Activision Blizzard is best known as the manufacturer of the Call Of Duty, World Of Warcraft, and Candy Crush franchises, each with millions of players worldwide.
🔍 Consider whether gamers will pay higher prices, which may result in fewer choices or poor quality.
— Competitive Markets Bureau (@CMAgovUK) July 6, 2022
Technology giant Microsoft is not only a popular name in the computing world for its hardware and Windows operating systems, but it also makes a range of Xbox gaming consoles.
The CMA said it would like to investigate whether the transaction could harm consumers by leading to “increased prices, reduced quality, reduced choices”.
The CMA said it will only determine if the merger could harm competition until September 1, and if possible, will begin a detailed investigation into the transaction.
He added that he would be “appropriately” involved with the counterparts of competition authorities around the world considering the merger.
Regulators also said that as part of their initial assessment, they have set a deadline of 20 July to seek views on transactions from interested third parties.
In response to the CMA, Microsoft Corporate Vice President and General Counsel Lisa Tanji said: We expect and believe that it is appropriate for regulatory agencies to consider this acquisition in detail.
“We clarify how we plan to run the gaming business and why we believe this transaction will benefit gamers, developers and the industry.
“We promise to answer questions from regulators and believe that in the end a thorough review will help us conclude a deal with a wide range of confidence and will be beneficial to the competition.
“We are confident that the transaction will be completed in fiscal year 2023, as originally expected.”