Even places authorities abroad Microsoft buys Activision Blizzard worth $68.7 billion under intensive supervision. Britain’s Competition and Markets Authority has launched an investigation into the deal struck between the Xbox powerhouse and the Duty publishing house in January.
According to a report by CNBC, the CMA released a statement saying the investigation would “consider whether the deal would harm competition and lead to poorer outcomes for consumers — for example, through higher prices, lower quality or reduced choice.” Therefore, until July 20, it collects information from interested third parties.
The CMA has set September 1 as the deadline for a decision. On that day, it will either determine that there is no problem with the acquisition or that further investigation is required.
Microsoft responded to the news of the investigation with a statement (per IGN) saying it will fully cooperate with authorities across the pond, adding that it is confident the Activision Blizzard deal will close in fiscal 2023 as expected.
“We will fully cooperate with the CMA’s merger assessment. We expect and believe it is appropriate for regulators to scrutinize this acquisition,” said Lisa Tanzi, Microsoft Corporate Vice President and General Counsel. “We’ve been clear about how we want to run our gaming business and why we think the deal will benefit gamers, developers and the industry.”
Microsoft’s acquisition of Activision Blizzard has sparked controversy within and outside the gaming industry. And that’s not just because of the huge price tag.
In March, three men who had invested $108 million in Activision Blizzard before the acquisition were… investigated for insider tradingwhich is illegal in the US In April, four US senators sent a letter to the Federal Trade Commission ask to oppose the deal if it turns out to “strengthen the monopoly and worsen the bargaining power between workers and the parties to this deal”, even though it was already reviewing the deal two months earlier. In May, New York City sued Activision Blizzardalleging that CEO Bobby Kotick expedited the sale of the company to Microsoft only to escape liability and accountability for the sexual misconduct and gender discrimination that occurred under his oversight, devaluing its stock in the process.