Britain’s competition regulators have reported that the $75bn acquisition from Microsoft on the Activation Blizzard for game makers might harm the UK gaming market. Thus, they suggested the sell-off of the Call of Duty blockbuster. The Competition & Markets Authority (CMS) believes the deal could result in less innovation, fewer choices, and higher gaming prices. Besides, it could hurt competitors like PlayStation & Xbox gaming consoles.
Overall, it could suppress the cloud gaming market. The CMS report marks a significant blow to Microsoft. In any case, the company is under extreme pressure to lure UK regulators to consider alternative solutions before publicizing its final report in April. But the Competition & Markets Authority insists that blocking Microsoft’s deal could be the only convenient solution to the issues. CMS says the company could sell its Call of Duty to solve the problems, but the feature has generated about 30bn since its launch.
Meanwhile, the company is struggling with regulatory laws in the US and Brussels. The current Activation Deal marks Microsoft’s biggest-ever deal and could move the company among the top gaming firms in revenue, behind Sony of Japan and Tencent of China. The US Federal Trade Commission had already filed a case in December against the Microsoft Activation acquisition.
The CMA report analyzed evidence that Microsoft might make Call of Duty Xbox exclusive to hurt rival console makers like Sony. The CMS also cited when Microsoft bought gaming studios to make all content exclusive to its platforms. Earlier, the Activation’s chief had criticized the Competition and Markets Authority for not singling out how the acquisition could promote the gaming industry in the UK. He accused the CMA of not deciding independently and that they might have co-opted the FTC ideology.
The chief explained that EU regulators had provided more recognition and insight into macroeconomic risks. On the other hand, rival Sony accused Microsoft of lying to regulators about its pledge to retain the Call of Duty on PlayStation after the acquisition. Yet, Microsoft insists it has no plans to reduce rivals' access to the console. The company promised to keep all online games stores open and give rival developers an equal opportunity to reach the market.
Above all, the CMA independent panel maintains that its job is to ensure that UK gamers don’t suffer a negative impact from global deals. The members insisted that such agreements might damage the market over time by hampering competition, decreasing innovation, and raising prices. The panel warned UK regulators that Microsoft could persuade them with behavioral solutions like licensing deals.
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