14 DAY TRIAL // Many expected Microsoft’s Activision takeover to be finalized this year, but as it turns out, the deal is hitting roadblocks in several countries.
The United Kingdom, for instance, has expressed its concerns that Microsoft could create a monopoly in the gaming industry once it takes over Activision, eventually harming the competition after becoming the owner of big franchises like Call of Duty.
In other words, the Competition and Markets Authority, also known as CMA, says it’s still not sure, despite Microsoft’s promises, that once the deal goes true, the Redmond-based software giant wouldn’t use its position to gain an unfair advantage over its competitors.
“The CMA is concerned that if Microsoft buys Activision Blizzard it could harm rivals, including recent and future entrants into gaming, by refusing them access to Activision Blizzard games or providing access on much worse terms,” the UK competition watchdog said in an announcement this week.
Microsoft given 5 days to address the concerns
Furthermore, CMA says that Microsoft would eventually be able to create an impossible to beat mix by combining Xbox, Azure, Windows, and the Activision franchises into a one-of-a-kind offering in the gaming cloud market, eventually damaging the competition.
As a result, CMA says Microsoft has five days to address these concerns.
“The CMA considers that these concerns warrant an in-depth Phase 2 investigation. Microsoft and Activision Blizzard now have 5 working days to submit proposals to address the CMA’s concerns. If suitable proposals are not submitted, the deal will be referred for a Phase 2 investigation. Phase 2 investigations allow an independent panel of experts to probe in more depth the risks identified at Phase 1,” the announcement reads.
When the Phase 2 is launched, the CMA will use an independent panel to investigate the acquisition and decide if Microsoft gains an unfair advantage over competitors or not.