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UK regulator: Microsoft's acquisition of Activision Blizzard hinders market competition and will conduct in-depth investigation

  • linda
  • 2022-09-02 14:27:22
  • 291 read
  the British antitrust regulator "Competition and Markets Authority" (CMA) said today that Microsoft's acquisi...

  the British antitrust regulator "Competition and Markets Authority" (CMA) said today that Microsoft's acquisition of Activision Blizzard (Activision Blizzard) transaction may lead to a significant reduction in market competition. .

  The British CMA said in a statement: "Unless the two parties provide acceptable commitments to resolve these competition issues. Otherwise, further in-depth investigations into the transaction will be launched." The CMA believes that the transaction may significantly weaken video game consoles, gaming Competition between subscription services and cloud gaming services.

  Microsoft and Activision Blizzard have yet to comment. According to the CMA, the two companies have until September 8 to make a commitment.

  In January, Microsoft announced that it would acquire Activision Blizzard, a game developer and publisher of interactive entertainment content, for $95 per share in cash, in a deal worth about $69 billion. When the deal closes, Microsoft will become the world's third-highest-grossing gaming company, behind Tencent and Sony.

  In July, the UK's CMA announced that it had launched a "preliminary" antitrust investigation into Microsoft's acquisition of Activision Blizzard. The CMA said it would assess whether the deal would harm competition in the market, lead to higher prices or less choice for consumers.

  The CMA expected at the time that the preliminary investigation would be completed by September 1 this year, before deciding whether to launch a further in-depth investigation. Today, the CMA released preliminary findings, saying the deal hampered market competition.

  The CMA has long advocated for a robust approach to scrutinizing acquisitions, especially between big tech companies. At the end of November last year, the CMA rejected Meta's acquisition of Giphy, saying the deal would hinder market competition.

  In addition to the British CMA, Microsoft's acquisition of Activision Blizzard has also been questioned and investigated by other regulators around the world, including the United States, New Zealand and Brazil. So far, only Saudi Arabia has announced its approval of the deal.


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