UK drops console concern over Microsoft-Activision deal

March 25, 2023 12:00 AM AEDT | By Reuters
Follow us on Google News:
Image source: Reuters

LONDON (Reuters) -Britain's competition regulator said Microsoft's 69-billion purchase of "Call of Duty" maker Activision Blizzard would not harm competition in gaming consoles, removing a major obstacle to the deal.

In findings based on new evidence, the Competition and Markets Authority said on Friday that it would not make financial sense for Microsoft to make "Call of Duty" exclusive to its Xbox console, and it would instead still have the incentive to continue to make the game available on PlayStation.

The regulator, however, said it was still looking at the impact of the deal on the cloud gaming market.

The takeover, the biggest ever in gaming, remains subject to the scrutiny of regulators in the United States and Europe.

The CMA had noted Activision's flagship "Call of Duty" franchise was important in driving competition between consoles, and it worried that Microsoft could benefit by making the game exclusive to Xbox, or only available on PlayStation under materially worse conditions.

But Microsoft has since offered Sony a licence deal to address those concerns.

"Our provisional view that this deal raises concerns in the cloud gaming market is not affected by today's announcement," the CMA said, adding that its overall investigation was on course for completion by its April 26 deadline.

A Microsoft spokesperson said: "We look forward to working with the CMA to resolve any outstanding concerns."

(Reporting by Sarah Young and Paul Sandle; editing by William James)


Disclaimer

The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.



We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK