The U.K.’s Competition & Markets Authority (CMA) has indicated in its preliminary findings that it is opposed to Microsoft’s planned purchase of games developer Activision Blizzard.
According to BBC News, the CMA has provisionally concluded that the $69 billion acquisition, which would see Xbox-maker Microsoft acquire Activision and its franchises such as “Call of Duty” and “Candy Crush,” would result in higher prices, fewer choices, and less innovation for U.K. gamers.
The findings are provisional and so both parties have a chance to respond according to a statement from Activision. Microsoft has responded, saying it would find solutions to “address the CMA’s concerns”.
The CMA says it had spent five months understanding the deal and its implications. It used an independent survey, gathered evidence from third parties and reviewed over three million internal documents from the two businesses.
Microsoft has insisted it would not make existing games exclusive to its own console Xbox. Rima Alaily, Microsoft corporate VP and deputy general counsel, says: “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.”
This marks another hurdle the proposed acquisition has to clear and it likely not the kind of thing Microsoft hoped to hear. It likely means weeks of meetings ahead as Microsoft argues the deal is a good thing for U.K. gamers.
The CMA will now consider potential changes. Reportedly one of the their suggestions is that Activision Blizzard could perhaps sell off one of its biggest assets – the “Call of Duty” franchise – a move that would likely reduce opposition to the acquisition. The CMA says it will publish its final report by April 26th.
The deal is also facing scrutiny from regulators in the EU and US, in the latter’s case the Federal Trade Commission has filed an anti-trust lawsuit attempting to stop it.
