UK Regulator Voices Concerns Over Microsoft's Acquisition of Activision Blizzard, Prompting Xbox Response

The UK's Competition and Markets Authority has outlined its concerns regarding Microsoft's proposed acquisition of Activision Blizzard, citing potential harm to PlayStation and other multi-game subscription services. The regulator believes Microsoft may withhold Activision Blizzard content from competitors, giving it an unfair advantage in the gaming market. Additionally, the CMA is concerned that Microsoft could use its ownership of Activision Blizzard, combined with its Azure cloud gaming service and PC operating system, to dominate the game streaming space and stifle competition. Microsoft has responded to these concerns, arguing that the deal will not harm PlayStation and that Sony's market-leading position makes it unlikely to be affected by the acquisition. Microsoft also reiterated its intention to keep Call of Duty on PlayStation consoles, stating that removing the game would alienate fans and damage both the Call of Duty and Xbox brands. The company believes that bringing Activision Blizzard games to its Game Pass subscription service will offer gamers more choice and increase competition in the market. The CMA will issue its preliminary findings from the second phase investigation in January, with the final report expected by March 1.