Canada Warns of Reduced Competition Following Microsoft’s Acquisition of Activision
According to a court filing on Thursday, the Department of Justice in Canada has determined that Microsoft’s acquisition of Activision Blizzard, the creator of “Call of Duty,” is expected to result in reduced competition in certain areas of the gaming industry.
In a letter dated Wednesday to Microsoft’s U.S. lawyers, the department said it had informed lawyers for Microsoft and Activision in Canada that the deal would likely lead to less competition “in game consoles and multiplayer subscription services (as well as cloud gaming).”
The letter was included in a US federal court proceeding on Thursday in which the US Federal Trade Commission is asking a judge to temporarily halt the proposed deal to give an FTC judge time to review it. The closing statements of the hearing are scheduled to be held later on Thursday.
Microsoft has demanded a decision in the legal battle before the contract expires on July 18. The verdict may come as early as next week.
In a statement, Microsoft said it was working with competition authorities to address the concerns.
“We received notice from the Canadian Competition Authority that it will continue to monitor the Activision Blizzard acquisition after the formal waiting period that prevented the deal from closing has ended,” a Microsoft spokesperson said.
Microsoft’s bid to buy the “Call of Duty” video game maker is also facing opposition from British competition authorities. Microsoft’s appeal to the UK Competition Appeal Tribunal is due to be presented on July 28.
