Microsoft Braces for Battle as UK Expected to Push Back Against Activision Blizzard Acquisition

Shaun
Feb 6, 2023
Updated • Feb 6, 2023
Games, Microsoft
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According to a report from The New York Times, Microsoft is confidently anticipating opposition from the UK's Competition and Markets Authority (CMA) regarding its proposed acquisition of Activision Blizzard. The report in question reads: ‘Microsoft’s legal team also expects the antitrust authority in Britain to oppose the transaction.’

The European Union's regulators have given Microsoft a formal antitrust notice regarding its acquisition of Activision Blizzard. Despite this, Microsoft remains determined to ‘resolve the issue’ and is optimistic that it can address the EU regulators' concerns. Microsoft also aspires to persuade the UK regulators to accept its proposals and give the green light to the acquisition.

Related: Microsoft is in trouble again

Despite possible approvals from the European Union and UK regulators, Microsoft's acquisition of Activision Blizzard still requires clearance from the Federal Trade Commission (FTC) in the US. In December, the FTC announced its intention to file a lawsuit to block the acquisition, as they believe it would grant Microsoft the power to stifle competition in the gaming industry. The FTC is determined to prevent the deal from being approved, stating that the acquisition would result in negative consequences for consumers and the market as a whole. With this clear stance, the FTC is resolved to take the necessary actions to prevent Microsoft from acquiring Activision Blizzard.

Microsoft anticipates that the UK will block its Activision Blizzard deal

Chile's National Economic Prosecutor, the Fiscalia Nacional Economica, gave the green light to Microsoft's acquisition of Activision Blizzard in December 2022. This decision came as part of Phase 1 of the regulatory process, and the deal has already been approved without conditions in Brazil, Saudi Arabia, and Serbia. 

The Microsoft Activision Blizzard deal has the potential to bring significant benefits to the gaming industry. With the combined resources and expertise of Microsoft and Activision Blizzard, the resulting entity will have the capability to invest heavily in research and development of new and innovative gaming technologies. This increased investment will drive growth and progress in the gaming industry, leading to more advanced and enjoyable gaming experiences for players. 

Related: What does the Microsoft Activision Blizzard deal mean for gamers?

Additionally, the deal could lead to more effective cross-promotion and distribution of gaming content across Microsoft's extensive network, increasing the reach and popularity of Activision Blizzard's games. Furthermore, with Microsoft's vast resources and experience in cloud computing and other cutting-edge technologies, the deal could enable the creation of new gaming platforms and services that will push the boundaries of what is possible in the gaming industry. 

In short, the Microsoft Activision Blizzard deal has the potential to be a catalyst for growth and progress in the gaming industry. However, this can only happen if regulators allow the deal to go through. Given how many regulators and other tech giants have already expressed concern about this deal, though, it doesn’t seem likely that it will be given the chance to bring the abovementioned benefits into the gaming industry.

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Comments

  1. SCmCsyF said on February 7, 2023 at 8:20 am
    Reply

    I don’t think this is a problem anyway. How big is Activision/Blizzard? All I can think of is Call of Duty as well as any Blizzard games.They also purchased Zenimax Media.which has Bethesda Game Studios and much more.

    I remember a while back there were rumors they were planning to buy Valve’s Steam digital distribution store. That would have had a lot more impact.

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