Microsoft's Activision Blizzard acquisition would result in less competition, UK government rules

News
By published

The provisional ruling doesn't look good for Microsoft

Warzone 2
(Image credit: Activision Blizzard)

A UK government agency has published provisional findings on Microsoft's Activision Blizzard purchase, and they aren't favourable.

Earlier today, on February 8, the Competition Markets Authority agency in the UK published a provisional report on Microsoft's attempted acquisition of Activision Blizzard. "A CMA investigation has provisionally concluded that Microsoft's proposed acquisition of Activision could result in higher prices, fewer choices, and less innovation for UK gamers," the statement reads.

This follows a "wide-ranging investigation conducted over the last five months to understand the market and potential impact of the deal," the agency states. This includes visits to both Microsoft and Activision Blizzard, as well as the review of over three million internal documents provided to the agency from both companies.

The CMA has also found that Microsoft's proposed acquisition could result in less competition in both the cloud gaming space and console markets. Microsoft holds 60-70% of the world's cloud gaming services, the CMA says, and purchasing Activision Blizzard would only reinforce this position, leading to less competition in that space.

While this isn't a final ruling into the acquisition, things aren't looking good for Microsoft's purchase of Activision Blizzard, in the UK at least. The final report from the CMA will be published on April 26 2023, so we'll have to keep an eye on the CMA, Microsoft, and Activision Blizzard in the coming months for any further developments on the potential ruling.

Hirun Cryer
Hirun Cryer
Freelance Writer

Hirun Cryer is a freelance reporter and writer with Gamesradar+ based out of U.K. After earning a degree in American History specializing in journalism, cinema, literature, and history, he stepped into the games writing world, with a focus on shooters, indie games, and RPGs, and has since been the recipient of the MCV 30 Under 30 award for 2021. In his spare time he freelances with other outlets around the industry, practices Japanese, and enjoys contemporary manga and anime.