UK ditches antitrust rules from Microsoft-Activision deal, but remains wary of impact on cloud gaming market
LONDON: Microsoft’s $69 billion purchase of “Call of Duty” maker Activision Blizzard would not harm competition in game consoles, Britain’s competition watchdog said, removing a major hurdle to the deal.
In its findings based on new evidence, the Competition and Markets Authority said on Friday that it would not make economic sense for Microsoft to make “Call of Duty” exclusive to its Xbox console and instead would still have an incentive to keep the game available for PlayStation.
However, the regulator said it was still reviewing the deal’s impact on the cloud gaming market.
The administration, which is the largest ever in the gaming industry, remains subject to the scrutiny of US and European regulators.
The CMA had stated that Activision’s flagship “Call of Duty” series was important in promoting inter-console competition, and was concerned that Microsoft could benefit by making the game exclusive to Xbox or PlayStation only under significantly worse conditions.
But Microsoft has since offered Sony a licensing deal to address those concerns.
“Today’s announcement does not affect our initial view that this deal raises concerns in the cloud gaming market,” the CMA said, adding that its overall investigation will be completed by April 26.
A Microsoft spokesperson said: “We look forward to working with the CMA to resolve the remaining concerns.”
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