Activision Deal of Microsoft Faces UK Probe

TECHNOLOGY

The competition watchdog in of the United Kingdom will conduct an in-depth probe into the deal with Microsoft worth over 68.7 billion dollars to acquire Activision Blizzard, a video game publisher amid antitrust concerns.

The Competition and Markets Authority (CMA) of the United Kingdom said that Microsoft had five days to propose the remedies, which makes it the first global antitrust regulator to sound the alarm over the transaction. The CMA also warned, this acquisition can negatively affect rivals by refusing them with the access to Activision Blizzard games, and providing access on the worse terms.

Microsoft is a key player in the gaming market, being one of the biggest computer companies in the world. Activision Blizzard is best known as the producer of the popular gaming series like World of Warcraft, and Call of Duty.

Sorcha O’Carroll, senior director of mergers at the UK CMA, said that following their phase one investigation, and they are concerned that Microsoft could use its control over the popular games like as World of Warcraft and Call of Duty post-merger for harming the rivals, including current and future competitors.

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Sorcha O’Carroll also said that if their current problems are not revealed, they are planning should explore this deal in a phase two investigation to reach a decision, which works in the interests of the businesses and gamers of the UK.

A phase two investigation can last for over seven months, and raised the prospect that it can be blocked completely.