Microsoft acquisition of Activision Blizzard faces extended investigation by antitrust...

midian182

Posts: 8,335   +103
Staff member
In a nutshell: Microsoft's $68.7 billion acquisition of Activision Blizzard is expected to face increased scrutiny from regulators in the UK and Brussels after the company failed to address concerns that the deal is anti-competitive and will prevent rival consoles and cloud gaming/subscription services from accessing Activision Blizzard games.

Earlier this month, the United Kingdom's Competition and Markets Authority (CMA) wrote that the Microsoft/Activision deal could lead to competition concerns within the video game industry. The regulator said that if Microsoft didn't submit a proposal to assuage these worries, the CMA will open an extended stage 2 phase of its probe in which the acquisition would face increased scrutiny.

According to the Financial Times, citing two individuals with knowledge of the situation, Microsoft decided not to offer any remedies to the CMA because there were no obvious commitments the UK regulator would likely accept. Only in rare circumstances will the CMA accept behavioral remedies such as promises to maintain access to a product or service at the end of a phase 1 probe.

The second phase of the CMA investigation is expected to begin this week. Microsoft could make a formal commitment to guarantee its rivals' access to games during this more in-depth investigation stage.

Representatives from both Microsoft and Activision have been in pre-notification-stage talks with regulators in Brussels since the deal was announced in January. Regulators in other countries, including the US, Brazil, and New Zealand, are also examining the acquisition.

One of the most significant issues facing the deal is the future of the Call of Duty franchise. Xbox boss Phil Spencer said Microsoft is committed to keeping CoD on PlayStation for several more years beyond the current deal Sony has with Activision, which covers the series' next three releases, including October's Call of Duty: Modern Warfare II. PlayStation CEO Jim Ryan called the proposal "inadequate."

The enormous amount of scrutiny the Microsoft/Activision deal faces over the impact it could have on the industry brings to mind Nvidia's attempted takeover of Arm. Team green endured so many regulatory challenges during the $40 billion acquisition that it decided to walk away in February.

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brucek

Posts: 1,296   +1,924
I don't believe Microsoft could become a monopoly in video gaming even if they had Call of Duty as a first party exclusive right now. PlayStation has long had better exclusives (at least IMO), Nintendo is no slouch either, and beyond that, the entire console market is itself in second place to mobile gaming. And while plenty of PlayStation gamers may be enjoying Call of Duty today, if it were to go away, it's not like they'd never be able to find another FPS to play instead - I think for many of them it'd be far more likely they'd find another FPS than that they'd buy a different console.
 

Uncle Al

Posts: 9,356   +8,555
"the deal is anti-competitive and will prevent rival consoles and cloud gaming/subscription services from accessing Activision Blizzard games"

In as much as Microsludge has already been slapped down for their monopolistic practices back in the 80's, and forced to change it's software from restricting only it's browser to be accessible, why on earth would anyone assume they won't try it again and again? It's called business and also the best reason for the saying "let the buyer beware" ......
 

passwordistaco

Posts: 413   +951
Step 1: Guarantee all future Call of Duty games will be available on Playstation.

Step 2: End the Call of Duty franchise after the release of the games currently in development.

Step 3: "Introducing our new game, Duty Calls!"
 

Neatfeatguy

Posts: 1,026   +1,889
The US population (citizens) are in love with suing for everything little thing. The EU/UK government is in love with suing/fining every big companies for everything.

(UK: Look at that! That Amazon worker looked at me when delivering a package! Now I know their employees are eye-raping everyone and it needs to stop! They're not allowing other delivery services like FedEx or DHL or UPS eye-rape people enough. $20 Billion fine to Amazon!)

I see no issue here. Who the hell cares if MS walks away with other IPs. Nothing is stopping competition from making games and creating their own IPs to pit against MS.

UK needs to stop this nonsense and worry about filling their coffers some other way.