Whether Microsoft can be approved to acquire Activision Blizzard, British regulators affect the outcome | TechNews Technology New Report

Microsoft announces $68.7 billion investmentAcquired Activision BlizzardAfter waiting for more than a year, it is facing the key review of the British regulator. The upcoming interim investigation results of the Competition and Markets Authority (CMA) will determine whether the merger can be successfully completed.

The CMA is expected to publish in the next few days the results of an interim investigation into Microsoft’s acquisition of Activision Blizzard, whether regulators representing the U.K. blocked the deal or demanded other remedies to complete the deal. The CMA initially expressed concern that this merger may bring unfair competitive advantages to the game console and subscription service markets, as well as the emerging cloud gaming industry.

What’s more, the CMA’s findings come ahead of decisions by the European Commission and the U.S. Federal Trade Commission (FTC), and could also influence those regulators’ decisions. The FTC filed a complaint with Microsoft last yearAntitrust Litigationis locked in a lengthy legal process to block the deal.

“The CMA investigation is critical. If it chooses to block the deal, these companies have little other recourse. British courts rarely overturn the CMA’s decision,” said Jennifer Rie, an analyst at Bloomberg Intelligence. transactions.

Microsoft received preliminary findings from EU regulators this week outlining concerns about the deal, according to people familiar with the matter. Microsoft signed a 10-year agreement with Sony last year to ensure that the “Call of Duty” series will continue to be released on the PlayStation platform, trying to alleviate market competition concerns. Now it may have a few weeks to submit remedies to the European Union.

Post-Brexit, the CMA conducted its review independently, out of the shadow of the European Commission. Microsoft has less access to the U.K. regulatory process than it has informally discussed remedies with EU regulators, and was unable to hold such discussions before the CMA’s decision. However, CMA guidelines updated last year allow companies to propose remedial measures pending interim findings.

Microsoft hopes that through the acquisition of Activision Blizzard, game IPs such as “Decisive Moment”, “Overwatch”, and “Diablo” will be added to its own game business. However, global regulators are following the M&A cooperation method, worrying that Microsoft may make it difficult for competitors’ game platforms to launch Blizzard’s popular games, and the CMA’s decision may affect the outcome of this M&A case.

(First image source: shutterstock)

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