Tuesday, November 28, 2023
HomeBusiness NewsMicrosoft's Activision takeover could harm gamers, UK regulator says

Microsoft’s Activision takeover could harm gamers, UK regulator says


An Activision Blizzard’s Call of Duty: Modern Warfare video game is inserted into the Microsoft’s Xbox One video game console arranged in Denver, Colorado, on Wednesday, Jan. 19, 2022.

Michael Ciaglo | Bloomberg | Getty Images

The British competition regulator says Microsoft’s $69 billion acquisition of gaming giant Activision Blizzard could harm competition in the U.K. gaming market and that it may move to block the deal.

The Competition and Markets Authority published a provisional decision on the deal Wednesday, stating the takeover raises competition concerns and may result in higher prices, fewer choices and less innovation.

related investing news

Microsoft's cloud business, a key pillar of the Club's investment case, stands to gain from the AI craze

CNBC Investing Club

In a notice of possible remedies sent to both parties, the CMA said it may require Microsoft to:

  • sell the business associated with its popular Call of Duty franchise
  • divest the Activision segment of Activision Blizzard
  • divest both Activision and Blizzard
  • terminate the deal

Microsoft and Activision Blizzard have until Feb. 22 to respond. The CMA is set to issue a final decision on Apr. 26. The regulator opened an in-depth probe into the deal on Sept. 1.

The regulator is concerned the Activision deal could strengthen Microsoft’s position in the cloud gaming market, adding Call of Duty and other lucrative titles to its cloud-based Xbox Game Pass platform.

Cloud gaming, which allows gamers play games over the internet on devices other than console, is still in its infancy and not yet a mass market technology.

The deal would also boost Microsoft’s console business, the CMA said, adding Microsoft would find it “commercially beneficial” to make Activision games exclusive to its Xbox hardware or available on PlayStation “under materially worse conditions.”

See also  Moxifloxacin: Advancing Antibiotic Therapy in the Pharmaceutical Industry

This “could substantially reduce the competition between Xbox and PlayStation in the UK, in turn harming UK gamers,” the watchdog added.

Activision Blizzard shares were down 3.4% in U.S. pre-market trading Wednesday, following the CMA announcement.

“We are committed to offering effective and easily enforceable solutions that address the CMA’s concerns,” said Rima Alaily, Microsoft corporate vice president and deputy general counsel, in an emailed statement to CNBC.

Microsoft has made commitments to Sony and Nintendo to continue releasing its new Call of Duty games on their respective PlayStation and Switch gaming platforms for 10 years.

An Activision Blizzard spokesperson said the company hopes to “help the CMA better understand our industry to ensure they can achieve their stated mandate to promote an environment where people can be confident they are getting great choices and fair deals.”

Activision Blizzard CEO Bobby Kotick also sent an internal memo to employees Wednesday, saying that the company was “confident that the law – and the facts – are on our side.”

“In this case, our combined companies will bring more competition to an already crowded field of world-class gaming competitors, including Sony, Tencent, NetEase, Apple, Amazon, and Facebook,” Kotick added. “We believe this merger gives us additional resources to compete with such giants.”

The Microsoft-Activision deal also faces scrutiny in the U.S. and European Union.

Stateside, the Federal Communications Commission is seeking to block the purchase on competition grounds, while the European Commission also has a competition investigation into the transaction. The commission recently filed a charge sheet, known as a statement of objections, setting forth its concerns about the deal, according to Reuters.

See also  5 natürliche Wege zur Überwindung der erektilen Dysfunktion


Source link

James Thomas
James Thomashttps://businessadvise.org
Hello, I am James Thomas blogger and content creator who specializes in personal finance and investing at Business Advise. I have been writing for over 5 years and have built a large following of readers who value practical advice and actionable tips. I'm committed to helping people take control of their financial futures and achieve their goals.

Most Popular

asia788dewata88Asia788 Maxwinasia788asia788DEWATA88dewata88linetogeltogelupprotogeltogelonjon4dbri4dwinstar4dneon4dangsa4ddesa4dklik4dcici4dkuy4dbni4dkenangan4doyo4dmiya4dasia788asia788kita99dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88key4ddragon4dpalu4dzara4dollo4dvisa4ddipo4dbingo4dambon4drasa4dwasiat4dneng4dpragmatic4dmenara4dgaruda4ddaya4dtata4daksara4dprada4dkingdom4droma4ddangdut4dtarget4darta4dvava4dyes4dtag4dloyal4dpola4dbajaj4dsisil4dpermen4dsenopati4dpapua4dpascol4dvenus4deropa4dkuat4dpedia4dks4dkekar4dlampung4dacong4dfantastic4dsega4doplet4dsuara4dpaitohk4dangkanet4dbetwin4datm4dlebah4dlima4dlipat4dibu4dtoto4dbarong4datas4diron4dbandit4dsemangat4dhut4dkoibet4dkebaya4daha4dmentos4dyolo4deak4dkelas4dtotal4dmamen4dvia4dhigh4djanda4ddewata88gacor7777asia788virgoBotuna4DBotuna4Dasia788asia788kita99kita99kita99asia788kita99Botuna4Dkita99kita99spaceman Virgobet88VIRGOBET88LOTRE4DASIA788ziptogelkita99virgobet88kita99kita99murah4dbukti4ddhx4dtante4dsbclive4dcalon4dmaya4dmedan4dstadium4dsekar4dtunas4dkumbang4dto4dtebar4dbocah4dneko4daxiata4dbibit4dkebaya 4doplet4dtoto 4dmaria togelbentengtogeltogel ccpt togelasiatogel88master togeldultogelindotogelzia togelspace togeldota togelkepri togeljeboltogeldagotogelpartaitogelpintu togeltoto88bola88kaisar888idcash88usaha188matahari88royal188garuda888mega288grandbet88prada188cocol88taktik88ovo88playbook88indolottery88tambang888lumbung88wayang88ugbet88oyo88gelora188ligaplay88sarang188probet88davo88mevius88gacor88nusantara88area188untung88v88totoorion88shio88subur88cipit88jago88soju88masterslot88dota88menangbet88pandora188megaslot88ajudan88sikat88situstogel88happybet188betwin188glowin88topslot88betslot88lineslot88olb88juragan88jingga88cukong88dewagame88visa288beton888ingatbola88liga788berlian888qq88asia988betdoremi88nona88bejo88spinhoki88cuan88kingbet188rajatoto88fixbet88suhu88mainslot88wslot888bintangbet88bintang88halo88planet88jpslot88gading88poka88arya88batara88bso88petir388autospin88ole388ciputra88Asia788Asia788Asia788Asia788Asia788asia788Slot SurabayaAsia788slot amerikaslot jepangslot koreatektok77slot kambojaslot jakartaslot asiaslot myanmarslot cinaSlot Eropaslot thailandslot kanadaslot taiwanslot hongkongslot anti kalahSlot Nigeriaslot vipslot hokislot vietnamkita99kita99kita99kita99kita99kita99kita99kita99kita99kita99kita99kita99tektok77virgobet88kita99virgobet88dewataslot88dewata888dewa888wukong138wukong138dewaslot88wukong138balislotkapalslotKAPALSLOTkapalslotkapalslottigerslot4dVirgobet88pohon4dpohon4dpohon4dpohon4dAsia788Asia788asiatogelAsia788kikislotkikislotkikislotkikislotSLOTUP88agen slot anti rungkatslotup88slotup88slotup88asia788bigo4ddewata88