Microsoft S Takeover Of Activision Is Expected To Face Deeper Investigations In The Uk And Eu

Earlier this month, the UK’s Competition and Markets Authority recommended that it launch a second phase investigation into the impact of the deal, concerned that Microsoft’s ownership of Activision Blizzard would “result in a significant lessening of competition in a market or markets in the UK. ” Microsoft was given five working days to provide evidence that would address those concerns, but the Financial Times reports that it has chosen not to. Sources familiar with the situation told the FT that Microsoft believed there were no obvious commitments it could make that the CMA would be likely to accept. Therefore, an in-depth investigation is expected to begin this week. The FT’s sources also expect a similar situation with regulators in the European Union. Both Activison and Xbox have been in pre-filing talks with regulators in Brussels since January, with Microsoft expected to formally make its case in the coming weeks. People familiar with the process expect regulators to conduct a more thorough investigation because of its size and potential impact. “It’s a big deal, a tough deal,” a Brussels source told the FT. “Extensive research is needed.” One point of contention remains the implications for Xbox’s main rival, Sony, especially with the possibility of Call of Duty – one of the biggest game franchises in the world – becoming exclusive to Microsoft’s platforms. Xbox has repeatedly assured that it won’t be doing that, at least not in the short term, with Xbox boss Phil Spencer recently revealing that the company has made a deal to keep Call of Duty on PlayStation for “several more years”. PlayStation CEO Jim Ryan responded in a statement to GamesIndustry.biz, arguing that the proposed deal was “inadequate on many levels.” In the wake of the CMA’s recommendations for a greater investigation, Activision Blizzard CEO Bobby Kotick said he still expects the acquisition to be approved and completed by the end of June 2023. You can read more about this deal and the regulatory hurdles it must overcome in our handy primer.