London Says Microsoft-Activision Merger Risks Harm to Consumers
The merger between the American computer giant Microsoft and the American video game publisher Activision Blizzard might harm consumers, according to the British competition regulator (CMA), according to preliminary results of an investigation published on Wednesday.
The “CMA concludes on a preliminary basis that Microsoft’s proposed acquisition of Activision might result in higher prices, less choice and less innovation for UK gamers,” the CMA said in a statement, leaving to hear that it might subsequently take measures to thwart this merger.
Worried regarding the consequences of this operation on the British market, the CMA announced in mid-September the opening of an in-depth investigation into the takeover, announced in early 2022, of Activision Blizzard by Microsoft.
In its statement Wednesday, the CMA said preliminary findings from its investigation show that buying one of the world’s largest game publishers “would strengthen the strong position and significantly reduce competition compared to what Microsoft would face without this in the UK digital gaming market”.
“This might alter the future of the games industry, and potentially hurt UK gamers, especially those who don’t want to buy an expensive games console or computer,” the CMA adds.
The British regulator might later decide on corrective measures such as partial disposals of assets, or even decide on an outright ban on the operation.
The takeover of Activision Blizzard, which notably publishes the hits “Call of Duty”, “World of Warcraft” and “Candy Crush”, by Microsoft for the record sum for the sector of $ 69 billion, would create the third largest player in the video game industry in terms of turnover, behind the Chinese group Tencent and the Japanese Sony, manufacturer of the PlayStation.
In addition to the United Kingdom, the United States and the European Union are worried regarding this mega-merger.
The US competition authority (FTC) in December launched lawsuits to block the deal and the EU launched an investigation into whether the acquisition would make Activision’s games exclusive to Xbox, the game console marketed by Microsoft.
