Bobby Kotick's threats have had no effect. UK regulators oppose deal between Microsoft and Activision Blizzard
The UK Competition and Markets Authority (CMA) has issued an official statement opposing the deal between Microsoft and Activision Blizzard.
Here's What We Know
The authority said in a statement that the merger of the two American giants would have a negative impact on the global gaming market in general and the UK market in particular.
The following arguments are cited:
- unfair competition;
- increase in the prices of games and gaming devices;
- a reduction in the choice of games;
- strengthening Microsoft's position in the cloud services segment.
The British believe that not only competitors, but also users will suffer from the deal.
One stumbling block remains Call of Duty. The CMA argues that if the shooter stops being released on the PlayStation or if new installments are released to the advantage of Microsoft consoles, it will lead to a decline in competitiveness in the gaming business.
As a solution to the problem, the CMA suggests that Microsoft will acquire Activision Blizzard without Call of Duty. But it's not clear how to do this technically, who would get the rights to Call of Duty and whether Phil Spencer would agree to such a deal.
Microsoft has time to change the mind of the British regulator. It has to be done by February 22nd and preferably without dubious analytics and veiled threats from Bobby Kotick.
The CMA will make its final decision by 26 April.
