UK Regulator Remains Unconvinced by Microsoft's Justification for Activision Blizzard Acquisition

The UK's Competition and Markets Authority has published a statement outlining its concerns regarding Microsoft's proposed acquisition of Activision Blizzard, challenging several key arguments presented by the Xbox manufacturer. The authority's primary concern is whether the acquisition would lead to Xbox making Call of Duty exclusive, a move Microsoft claims it has no intention of making, yet only commits to maintaining the game's availability on PlayStation for a limited number of years. The CMA's analysis suggests that the merged entity may have a stronger incentive to restrict Sony's access to Call of Duty than Microsoft has acknowledged. The regulator points to Microsoft's past business practices, where it has acquired multi-platform publishers and made their games exclusive, as evidence of this potential risk. Furthermore, the CMA disputes the notion that Microsoft would refrain from making Call of Duty exclusive due to fear of reputational damage, stating that it found no compelling evidence to support this claim. The authority believes that an exclusive Call of Duty would significantly impact consumer choices regarding console purchases, ultimately harming competition in the market and negatively affecting consumers. While examining the acquisition's broader impact on competition, the CMA acknowledges Sony's position as Microsoft's primary competitor in a highly concentrated console market, warranting specific consideration. The regulator notes that Nintendo, although a market player, offers distinct hardware and software catering to a different demographic. Interested parties have until October 28 to submit their responses to the CMA's statement in writing.