The CMA is set to look into whether Microsoft's proposed acquisition of Activision Blizzard could hurt market competition.
The UK competition regulator is officially investigating Microsoft's acquisition of Activision Blizzard. The Competition and Markets Authority is set to look into whether Microsoft's deal with Activision Blizzard could hurt market competition and lead to a worse offer for consumers, "for example, through higher prices, lower quality, or reduced choice."
The first phase of the investigation is set to be complete until September 1. CMA noted that it will be accepting feedback on the deal from interested third parties through July 20.
Corporate vice president and general counsel at Microsoft Lisa Tanzi said in a statement that the company expected that regulators will "take a close look at this acquisition" and added that it will "fully cooperate" with the CMA.
"We’re committed to answering questions from regulators and ultimately believe a thorough review will help the deal close with broad confidence, and that it will be positive for competition," Tanzi said. She also added that Microsoft remains confident that the deal will close in 2023 as it was initially planned.
The deal is also currently being investigated by the US Federal Trade Commission instead of the Justice Department. The regulator is handling an antitrust review and is interested in the possible consequences of the takeover for Microsoft's competitors in the gaming industry.
Microsoft and Activision Blizzard intend to close the deal by the summer of 2023. If approved by regulators, it will amount to a record $68.7 billion for the gaming industry.