The European Union and the United Kingdom are investigating Microsoft’s acquisition of Activision Blizzard. Regulators are concerned that the deal is thwarting competitors. According to Sony, the merger has negative consequences for video game series Call of Duty.
Two insiders told The Financial Times that the UK market regulator (CMA) is ready to launch an in-depth investigation. Earlier this month, the CMA became the first antitrust authority in the world to raise objections to the acquisition.
Microsoft was given five days to address the objections with a proposal. In any other case, the supervisor would initiate an official investigation. Microsoft reportedly chose not to respond because there were no guarantees that the CMA would accept the proposal.
Since the announcement of the acquisition in January, Microsoft and Activision Blizzard have been in contact with European regulators. The talks are considered the preliminary stage of an official investigation. Regulators expect a lengthy procedure.
Legal experts told The Financial Times that authorities will take their time to sort out the acquisition. Microsoft has a large market share, the acquisition amount of 75 billion dollars is gigantic and competitors like Sony are worried.
Last week, Microsoft was accused by Sony of deception. According to Sony, the tech giant was unfair to regulators about its intention to continue offering the Call of Duty series on PlayStation devices. In reality, Microsoft would plan to stop releasing the video games for the PlayStation.
The tech giant faces multiple challenges. Microsoft hopes to complete the acquisition by the end of June 2023, but first the company has to convince regulators worldwide.
