The UK antitrust watchdog has launched an investigation into Microsoft Corp’s plan to acquire Activision Blizzard Inc.He joined other regulators reviewing the $69 billion video game deal.
The Competition and Markets Authority (CMA) reported a few days ago that it will evaluate whether there is an agreement to merge the tech giant with the franchise manufacturer. Call of Duty it will hurt competition and lead to higher prices or fewer options.
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The organizer said it would work with colleagues around the world and set the first deadline for September 1 to decide whether to launch an in-depth investigation.
The CMA has long advocated a stronger approach to reviewing deals, particularly by the largest tech companies.
Regulators are likely to watch closely how Microsoft’s control over Activision could hurt its competitors by limiting their access to the company’s biggest games.
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President Lina Khan told lawmakers in June that the US Federal Trade Commission (FTC) is also reviewing the deal.
“We’ve been clear on how we plan to run our games business and why we believe the deal will benefit gamers, developers and the industry,” said Lisa Tanzi, general counsel at Microsoft.
“We are committed to answering questions from regulators and ultimately believe that a thorough review will help close the deal with broad confidence and be positive for competition.”
Tanzi said the firm expects the deal to be completed in 2023. An Activision spokesperson did not immediately respond to a request for comment.
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The FTC’s Activision research will focus on the combination of the company’s gaming portfolio with Microsoft consoles and hardware systems.
Lawmakers also urged the FTC to take a closer look at how the proposed settlement will affect Activision’s employees, who are demanding greater accountability from the company following allegations of sexual harassment and discrimination.
Microsoft wants Activision to increase the number of games it can offer exclusively to those who join its Game Pass subscription service for Xbox consoles.
Activision is home to some of the world’s most popular game franchises, including: Call of Duty, Candy Crush, Guitar Hero, Skylanders, Destiny, Crash Bandicoot and skate games Tony Hawk.
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The company is a major player in the mobile gaming segment, while Microsoft is on the sidelines at best. The agreement will address this significantly.
Activision isn’t the only target Microsoft has as part of its Game Pass expansion plan. In 2020, it has agreed to buy ZeniMax Media Inc., home of The Elder Scrolls, and Bethesda Softworks, the firm behind Doom, for $7.5 billion. He is also the owner of Mojang, the creator of Minecraft.
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I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.
