Microsoft’s acquisition of Activision has been a hot topic for the past year or so, but regulatory hurdles are still preventing the two companies from finalizing the deal valued at $68.7 billion, which is the largest acquisition in the history of technology. The latest regulator to voice its concerns is the British Competition and Markets Authority.
Analysts believe Microsoft’s acquisition will hurt gamers in the long run because titles like Call of Duty could become exclusive to Microsoft’s Xbox console. This would lead to higher prices, smaller range, market dominance, lower quality and worse service in gaming consoles.
Our job is to make sure UK players aren’t caught in the crossfire of global deals which, over time, could harm competition and lead to higher prices, fewer choices or less innovation. We have tentatively discovered that this may be the case here.
The European antitrust commission appears to be on the same page as the British one and believes that some remedies must be applied before moving forward with the deal.
The UK CMA suggests decoupling the Call of Duty franchise and allowing it to be an independent company. However, this can lead to limited resources and assets and cripple the business.
Microsoft promises it won’t make Activision’s games exclusive to its own platforms, and has even offered Sony a 10-year license to ensure Call of Duty stays on PlayStation for the foreseeable future.
CMA isn’t too keen on this idea, however, as Microsoft has a history of exclusive titles with Windows and Xbox and its track record when it acquired the ZeniMax studio in 2020 also speaks against it. And even if Microsoft keeps Call of Duty on PlayStation, CMA is concerned it would be in “materially worse shape.”
Start a new Thread