The antitrust watchdog in the United Kingdom stated on Wednesday that Microsoft’s planned $68.7 billion acquisition of video game publisher Activision Blizzard will hinder competition and harm players.
According to the Competition and Markets Authority, a thorough examination of the agreement revealed that it might improve Microsoft’s position in the expanding cloud gaming business, thus “harming U.K. gamers who cannot purchase pricey consoles.” With cloud gaming, users may play their favorite titles from any internet-connected device, such as a smartphone or tablet.
The watchdog warned in a preliminary analysis that the mega-merger may affect British gamers because it would “weaken the essential rivalry” between Microsoft’s Xbox console and Sony’s rival PlayStation devices.
Since the all-cash transaction would give Microsoft ownership of major game properties like Call of Duty, World of Warcraft, and Candy Crush, Sony and regulators in the U.S. and Europe are opposing it.
In a press release, Martin Coleman, chair of the independent expert panel that conducted the investigation, said, “Our job is to make sure that U.K. gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation.” This may be the case, we have found provisionally.
