UK CMA No Longer Considers Microsoft Acquisition A Console Game Competition Threat

Microsoft acquisition of Activision Blizzard. (Microsoft)

JAKARTA - In February, the UK's Competition and Markets Authority (CMA) published an interim finding saying Microsoft's acquisition of Activision Blizzard would raise fears of competition over console games and cloud games in the UK.

But now, after gathering more information, Britain has softened its objections by revising its decision and saying the acquisition will not reduce competition significantly.

The CMA analysis found that Microsoft's ownership of the Call of Duty franchise would later not affect Sony's ability to compete with the PlayStation system materially.

🎮CMA narrows scope of concerns in #Microsoft / #Activision review.Read more: https://t.co/7Kpy127JYi

— Competition & Markets Authority (@CMAgovUK) March 24, 2023

"After carefully considering the new evidence, along with the various information gathered before the interim findings were issued, the CMA investigation group has updated its interim findings and reached a provisional conclusion that, overall, the transaction will not result in a substantial reduction of competition in relation to console games in the UK," CMA wrote on its official website.

However, these provisional findings are only related to competition in the provision of console games and not competition in the provision of cloud gaming services.

The CMA will continue to carefully consider the response provided, and the CMA merger investigation will continue. The next report will be released no later than April 26, 2023.

"After considering additional evidence provided, we now conclude that the merger will not substantially reduce competition in console game services as Microsoft costs to contain Call of Duty from PlayStation will outweigh any advantage of the measure," said Martin Coleman, chairman of the independent panel of experts conducting the investigation.