Microsoft's deal with Activision Blizzard could harm UK gamers
Microsoft's deal with Activi...
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Microsoft's deal with Activision Blizzard could harm UK gamers

9 February 2023
2 min.
Microsoft's deal with Activision Blizzard could harm UK gamers

A deal between companies

The UK regulator has opposed Microsoft's purchase of major US computer games developer Activision Blizzard for $75bn.

The UK Competition and Markets Authority, shortly CMA, has expressed its intention to block the Call of Duty game deal, which brought Activision Blizzard $30bn. This decision is based on the fact that if the purchase is successful, the corporation would benefit from making Call of Duty an exclusive for the Xbox production console company or provide its users with significantly better terms, which could harm other console manufacturers such as Sony.

Concerns are also backed up by the fact that Microsoft has previously been involved in creating exclusive content for its platforms.

Microsoft is going to persuade CMA not to block the deal, as it plans to offer companies 10-year licensing agreements similar to those signed with Nintendo in December.

"It is our responsibility to provide long-term and 100 per cent equal access to Call of Duty for Sony, NintendoSteam and other companies," a Microsoft lawyer said. It is known that the CMA will make a final decision in April.

To recall, in January 2022, Microsoft announced plans to acquire one of the world's largest game developers Activision Blizzard for 68.7 billion.

The US Federal Trade Commission filed a lawsuit to block the takeover in December and has scheduled an internal trial for August. The European Commission will decide on its in-depth review by 11 April and is expected to issue a statement of objections outlining possible reasons for blocking the deal if no action is taken.

Competitor Sony Group has been a vocal opponent of the deal and responded to the CMA investigation by saying it was a "game-changer and a threat to the industry". The US and EU investigations also oppose it. Sony also highlighted its concerns about the future impact on the nascent cloud gaming industry.

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