Regulatory Scrutiny Intensifies for Microsoft's Activision Acquisition

The acquisition of Activision Blizzard by Microsoft, valued at $68.7 billion, is anticipated to undergo rigorous examination by regulatory authorities in both the UK and EU. Following the UK's Competition and Markets Authority recommendation for an in-depth investigation, citing potential substantial lessening of competition, Microsoft has opted not to provide evidence to alleviate these concerns within the allotted five business days. Sources indicate that Microsoft believes no commitments would be sufficient to address the regulator's apprehensions, thereby prompting an extensive investigation. Similarly, EU regulators are expected to conduct a thorough examination due to the deal's size and potential impact. A key point of contention revolves around the implications for Sony, particularly the possibility of Call of Duty becoming exclusive to Microsoft platforms. Despite assurances from Xbox that this will not occur in the short term, with a commitment to maintain the game's availability on PlayStation for several years, Sony remains skeptical. The PlayStation CEO has termed the proposed agreement 'inadequate on many levels,' while Activision Blizzard's CEO anticipates the acquisition to be approved by the end of June 2023. In response to the CMA's decision for further investigation, Sony has expressed its support, citing the need to protect gamers from the potential negative implications of the deal. Microsoft, in turn, has reiterated that withdrawing Call of Duty from PlayStation would be counterintuitive given the console's market position.