Beautiful Virgin Islands

Wednesday, Mar 29, 2023

Microsoft’s $69bn takeover of Activision a step closer to being blocked by UK watchdog

Microsoft’s $69bn takeover of Activision a step closer to being blocked by UK watchdog

The Call of Duty maker responds to the CMA's competition concerns by claiming the regulator doesn't understand the gaming market while Microsoft says "solutions" will be found.

The UK's competition watchdog has moved a step closer to potentially blocking Microsoft's planned $69bn (£56bn) takeover of Call of Duty gaming firm Activision.

In a provisional ruling, the Competition and Markets Authority (CMA) said the proposed tie-up could lead to higher prices, fewer choices and less innovation for UK gamers.

Activision responded by claiming the regulator did not understand the market.

The massive deal, first announced over a year ago, was designed to bolster Xbox maker Microsoft's position in the lucrative gaming sector.

Signing up subscribers has become a priority for big tech firms as traditional growth areas such as ad sales becomes less reliable.

But Microsoft's strategy has been met with a series of complaints from competitors, including Sony, and regulators globally.

The US Federal Trade Commission (FTC) has already moved to block the deal on similar competition grounds, with a hearing due in August.

The CMA began its in-depth probe in September last year after deciding further work on its implications was warranted.

The regulator said on Wednesday that it had given both parties the opportunity to resolve its concerns through possible remedies before a final decision, that could result in the deal being blocked, was to be reached.

Call of Duty's popularity has proved a battleground in the takeover saga.

That would be announced by 26 April, the statement said.

It explained: The CMA provisionally found that weakening competition by restricting the access that other platforms have to Activision's games could substantially reduce the competition between Xbox and (Sony) PlayStation in the UK, in turn harming UK gamers.

Xbox and PlayStation compete closely with each other at present and access to the most important content, like CoD, is an important part of that competition.

"Reducing this competition between Microsoft and Sony could result in all gamers seeing higher prices, reduced range, lower quality, and worse service in gaming consoles over time."

Martin Coleman, who chairs the CMA's investigation panel, added: "It's been estimated that there are around 45 million gamers in the UK, and people in the UK spend more on gaming than any other form of entertainment including music, movies, TV, and books.

"Strong competition between Xbox and PlayStation has defined the console gaming market over the last 20 years.

"Exciting new developments in cloud gaming are giving gamers even more choice.

"Our job is to make sure that UK gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation.

"We have provisionally found that this may be the case here."

Microsoft and Activision were given until 22 February to submit their responses - including to the CMA's proposed remedies.

It has consistently batted off the criticism of regulators but entered a 10-year commitment to offer Call of Duty, the popular first-person shooter series, to Nintendo and Sony platforms.

Activision responded: "We hope between now and April we will be able 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, where competitive, fair-dealing business can innovate and thrive, and where the whole UK economy can grow productively and sustainably."

Rima Alaily, Microsoft's corporate vice president, said: "We are committed to offering effective and easily enforceable solutions that address the CMA's concerns.

"Our commitment to grant long-term 100% equal access to Call of Duty to Sony, Nintendo, Steam and others preserves the deal's benefits to gamers and developers and increases competition in the market.

"75% of respondents to the CMA's public consultation agree that this deal is good for competition in UK gaming."

Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
I have a dream, MLK inspiring speech
This is how an electric car saves all the energy that he would have spent if he had lived 50 years longer.
Aretha Franklin, Marvis Staples - Oh Happy Day
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
BVI Freedom Song
Social Media censoring users for saying the true
Billy Preston - You Can't Beat God Giving (Live)
Smart Iranian fashion designer teaching dummy TV anchors lesson about reality
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
AMERICA, 2023
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
Hello Dolly
AOC explains why she opposes banning TikTok
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
Bob Marley - Get Up Stand Up
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Yes He Can
Gordon Moore, a co-founder of Intel Corporation, died at 94
What A Friend We Have In Jesus
Powell: Silicon Valley Bank was an 'outlier'
Unforgettable
Donald Trump arrested – Twitter goes wild with doctored pictures
Touch The Hem Of His Garment
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
The Lord's Prayer
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
THE GOD MOVEMENT...BEAUTIFUL BVI
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Siyahamba
Paris Rioting vs Macron anti democratic law
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
'Sexual Fantasy' Assignment At US School Outrages Parents
Ramblin' Rose
Credit Suisse to borrow $54 billion from Swiss central bank
Protoje - Who Knows ft. Chronixx
Russian Hackers Preparing New Cyber Assault Against Ukraine
Pressure - Virgin Islands Nice
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Phil Wickham - House Of The Lord
If this was in Tehran, Moscow or Hong Kong
My God Is Real (Yes, God Is Real)
Nashville police officer, and a female driver shooting one another
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Louis Armstrong - When The Saints Go Marching In
Mexican President Claims Mexico is Safer than the U.S.
Kanye West Sunday Service - hallelujah, salvation, and glory
A brief banking situation report
Jonathan Nelson - I Believe (Island Medley
Lady bites police officer and gets instantly reaction
From The Virgin Islands Sqad Up
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Common, John Legend - Glory
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
I have a dream, MLK inspiring speech
Silicon Valley Bank exec was Lehman Brothers CFO
Aretha Franklin, Marvis Staples - Oh Happy Day
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BVI Freedom Song
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Billy Preston - You Can't Beat God Giving (Live)
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Elon Musk Is Planning To Build A Town In Texas For His Employees
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Fitness scam
Hello Dolly
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Bob Marley - Get Up Stand Up
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Yes He Can
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
What A Friend We Have In Jesus
Banking regulators close SVB, the largest bank failure since the financial crisis
Unforgettable
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Touch The Hem Of His Garment
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
The Lord's Prayer
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
THE GOD MOVEMENT...BEAUTIFUL BVI
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Siyahamba
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
×