LogInThe UK competition regulator stated that it was concerned that Microsoft could use its control of games like Call of Duty to hurt its competitors.
The UK's Competition and Markets Authority (CMA) is one of the many global regulators which have to approve Microsoft's acquisition of Activision Blizzard. It started investigating the deal in July looking into whether Microsoft's proposed acquisition could hurt market competition and lead to a worse offer for consumers.
The first phase of the investigation finished on September 1, with the competition regulator stating that it was concerned about Microsoft's deal with Activision Blizzard which is why it may extend the investigation.
"This evidence shows that the Merger could impact competition in several ways. In investigating the Merger, ... the CMA focused on the most important ways in which the Merger could potentially harm competition, both now and in the future," the summary of phase 1 decision reads.
"These 'theories of harm' assess the harm to competition that could arise from (a) Microsoft withholding or degrading ABK’s content – including popular games such as Call of Duty – from other consoles or multi-game subscription services; and (b) Microsoft leveraging its broader ecosystem together with ABK’s game catalogue to strengthen network effects, raise barriers to entry and ultimately foreclose rivals in cloud gaming services."
The regulator specifically emphasized that ownership of the Activision Blizzard catalog in light of Microsoft's already strong position would allow the company to undermine Sony's ability to compete in the market.
According to the CMA, the investigation into the deal will move into the second phase if Microsoft does not present arguments in favor of the fact that the competition in the market and consumers will not be affected in any way by the deal.
Earlier, the CEO of Microsoft Gaming Phil Spencer expressed his confidence that the deal with Activision Blizzard will be closed. He also noted that such large transactions should be carefully checked, and therefore he is happy to cooperate with regulators in different countries.
Now, Microsoft released its own statement regarding the deal saying that it is committed to releasing its games, in particular Call of Duty, on rival platforms including PlayStation, and will "continue to engage with regulators with a spirit of transparency and openness" as the investigations go on.
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