Microsoft-Activision merger could damage gaming market, says CMA | News News

Microsoft is in talks to buy Activision Blizzard, in a deal reportedly worth more than £55bn; Activision produces popular titles including Call of Duty; The game developer is also one of the biggest in the esports market.

Call of Duty is Activision’s marquee title

Microsoft’s bid to buy Activision Blizzard has hit a snag after the Competition and Markets Authority (CMA) said the $68.7bn (£56.7bn) deal could hurt British gamers.

Britain’s competition regulator published its interim findings after a five-month investigation into the deal and said the merger could lead to higher prices, fewer choices or less innovation for players.

CMA said it can make Microsoft stronger and stifle the competition, harming the competition between its distinctive console, Xbox and Sony PlayStation.

Activision produces a number of video games, including Call of Duty, and opponents of the merger have raised concerns from rivals, claiming it could see access to popular franchises restricted – something Microsoft denies.

CMA said that the purchase of one of the world’s most famous and largest game publishers will strengthen Microsoft’s position in the market and subsequently reduce the competition that Microsoft will face.

The video game developer also creates popular esports games and is one of the biggest names in the market.

The California-headquartered company has Skylanders, Crash Bandicoot and Tony Hawk games as titles.

Microsoft commits to ‘100 percent equal access’

The competition watchdog said it had written to the parties involved with a notice of possible remedies to temporarily solve the problem, and asked for a response by February 22, before publishing the CMA’s full report on April 26.

Martin Coleman, chairman of the independent expert panel which carried out an investigation into the deal, said: “It is estimated that there are around 45 million gamers in the UK, and people in the UK spend more on games than on any other form of entertainment including music, film, TV and book.

“Fierce competition between Xbox and PlayStation has defined the console gaming market for the past 20 years. Exciting new developments in virtual gaming are giving players more options.”

In response, Microsoft’s corporate vice president and deputy general counsel, Rima Alaily, said: “We are committed to offering effective and easy-to-implement solutions to address CMA issues.

“Our commitment to providing long-term 100 percent equal access to Call Of Duty to Sony, Nintendo, Steam and others preserves the benefits of these deals for players and developers and increases competition in the market.

“Seventy-five percent of respondents to the CMA’s public consultation agreed that the deal was good for competition in UK gaming.”