The second-stage investigation comes after the UK’s Competition and Markets Authority (CMA) said on September 1 that the takeover — which would make Microsoft the world’s third-largest video game publisher — posed a risk to markets such as consoles and games cloud.
As part of the proposed deal, Microsoft could acquire ownership of popular video game franchises including “Call of Duty,” “World of Warcraft” and “Candy Crush.”
UK regulators have raised concerns that the takeover could allow Microsoft to cut off that valuable content from other gaming platforms, particularly Sony’s PlayStation.
“We stand ready to work with the CMA on next steps and address any of its concerns,” the company said in a statement provided to CNN. “We want people to have more access to games, not less.”
In February, the company launched a charm offensive with regulators around the world, announcing several commitments, including a promise not to give preferential treatment to the content it owns on the platforms it manages.
Earlier this month, the CMA gave Microsoft several days to respond to its preliminary finding with proposed remedies. On September 6, Microsoft declined to make such an offer, the CMA said on Thursday, setting the stage for a second-phase investigation.
In accordance with the company’s practices, this deeper investigation could result in a decision to liquidate the deal, impose restrictions or divestitures on the acquisition, or block the deal outright.
