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UK regulator: Microsoft's acquisition of Activision Blizzard will hurt industry competition

  • joy
  • 2022-09-02 14:26:08
  • 278 read
  British antitrust agencies believe that Microsoft's $69 billion acquisition of Activision Blizzard will harm...

  British antitrust agencies believe that Microsoft's $69 billion acquisition of Activision Blizzard will harm competition in the game console market, subscription service market, and cloud gaming market. They believe that the deal should be investigated in depth.

  The UK's Competition and Markets Authority (CMA) believes the acquisition will hurt the industry if Microsoft bans rivals from Activision's best-selling games. CMA admitted: "We are very concerned that after the acquisition Microsoft will use its control of popular games (such as "Call of Duty" and "World of Warcraft") to crush competitors, including recent and future competitors, such as multi-game paid subscription services and cloud game opponent."

  Microsoft's Xbox competes with Sony and Nintendo, and Microsoft president Brad Smith said: "We want more people to play games, not less. Sony is the industry leader, and it's worried about Call of Duty. But we made a promise that the game would be available on both Xbox and PlayStation on day one."

  Some analysts argue that acquisitions won't hurt competition if Microsoft promises to give rivals access to Microsoft games. Atlantic Equities analyst Kunaal Malde believes that Microsoft should make bigger concessions and explain the exclusivity issue in writing.

  CMA believes that Microsoft has a strong cloud platform, such as Azure, it also has a PC operating system Windows, and Xbox is also very successful, so Microsoft has certain advantages in the cloud gaming market; if Microsoft combines these advantages with Activision games, it may damage the firstborn Competition for cloud gaming services.

  Microsoft's acquisition deal needs to be approved by major markets such as the United States, the European Union, and China.


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