The UK CMA finds Microsoft's proposed $69B Activision Blizzard acquisition will harm competition in the UK's gaming market and asks Microsoft for remedies
Microsoft Corp.'s $69 billion acquisition of Activision Blizzard Inc. will harm competition in the UK gaming market …
Bloomberg Katharine Gemmell
Context & Ripple Effects
The CMA had already put the transaction into an in-depth review and sought possible remedies; its later concerns included Microsoft potentially withholding Activision games from rival services. This finding turns that review into a concrete competition challenge for Microsoft and Activision Blizzard.
The case subsequently became centered on the nascent cloud-gaming market, rather than only established console competition. That framing helps explain why remedies, rather than a simple assessment of the two companies’ current market positions, became central to the CMA process.
First-order effects
- Microsoft must formulate remedies acceptable to the CMA or face a material obstacle to completing its acquisition of Activision Blizzard in the UK.
- Activision Blizzard remains subject to a prolonged transaction review while the CMA tests whether the proposed deal would reduce competition in UK gaming.
Second-order effects
- Microsoft’s proposed treatment of Activision games becomes a focal point for rivals, since the CMA’s related concerns include access to games on competing services.
- The CMA’s remedy process raises the importance of cloud-gaming access as a deal condition, pushing the parties to address a market the regulator views as still developing.
Third-order effects
- The later CMA decision to block the deal shows that remedies must address the regulator’s cloud-gaming concerns in substance, not merely preserve competition in mature gaming segments.
- The subsequent revised proposal involving the sale of certain gaming rights to Ubisoft points toward rights separation as a structural tool for clearing platform-content mergers when access commitments alone are insufficient.
The trend: Gaming merger review is increasingly testing how control of major game libraries may shape emerging cloud-distribution markets.
Related: CMA · Microsoft · Activision Blizzard · CMA blocks Microsoft’s Activision acquisition · CMA focuses on nascent cloud gaming
Related Coverage
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Discussion
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Pure Xbox
Ben Kerry
on x
UK Authority Proposes Excluding Call Of Duty From Xbox Activision Blizzard Deal
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@cmagovuk
@cmagovuk
on x
🎮Our in-depth investigation has provisionally found the @Microsoft and @Activision merger could reduce competition in #cloud and #console gaming markets, and harm UK gamers. https://www.gov.uk/... A short thread on our findings ⬇️ #Gaming #Xbox https://twitter.com/...
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@lulumeservey
Lulu Cheng Meservey
on x
Today the CMA released its provisional findings on our deal. They're exactly as they sound - provisional. This means the CMA lays out its concerns in writing, and now both we and MSFT have a chance to respond. (thread) https://twitter.com/...
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@wario64
@wario64
on x
CMA (UK regulator) provisionally concludes on MS/Activision Blizzard deal - could harm gamers “resulting in higher prices, fewer choices, or less innovation.” Says remedies include selling Call of Duty, the Activision segment, or both Acti/Bliz segments https://www.theverge.com/.…
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@stephentotilo
Stephen Totilo
on x
Bear in mind, the UK keeps citing risk to competition if Microsoft were to make Call of Duty exclusive to Xbox Microsoft keeps saying, no, we'd offer 10 years of parity on any platform UK in October: Whatever, contracts aren't forever and can be broken https://twitter.com/...
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@firstadopter
Tae Kim
on x
One of CMA's possible structural remedies for the Activision Blizzard deal is divesting both Activision and Blizzard 🤣 https://twitter.com/...
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@tomwarren
Tom Warren
on x
Microsoft has responded to the CMA's provisional findings, saying it's “committed to offering effective and easily enforceable solutions that address the CMA's concerns.” That includes the commitments for 100% equal access to CoD for Sony and others https://www.theverge.com/...
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@fosspatents
Florian Mueller
on x
As I read (on @Techmeme, of course) the headlines of other people's take on the UK CMA's provisional findings on #Microsoft-#ActivisionBlizzard, I believe they all focus too much on the problem instead of solutions. The first document I read was the Notice of Remedies! $ATVI
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@sarafischer
Sara Fischer
on x
🚨UK regulator deals blow to Microsoft's $75bn Activision deal, says it would cause “substantial lessening of competition” in gaming consoles and cloud gaming services in the UK - Final report from UK competition authority expected this Spring https://www.ft.com/...
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@charlieintel
@charlieintel
on x
The UK CMA released its latest report on Microsoft's acquisition of Activision Blizzard and says the deal will harm competition. It says it will look at possible concessions for their concerns, and even suggests Microsoft making Call of Duty an independent company as an option. h…
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@one2escape
Duncan
on x
CMA has ruled that the Activision Microsoft Merger will lessen competition https://assets.publishing.service.gov.u k/ ...
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@cmagovuk
@cmagovuk
on x
☁️ We've provisionally found that the merger could impact the future of cloud gaming in the UK. We're concerned that by buying Activision, Microsoft's strong position in the market could be reinforced, reducing the competition it would otherwise face. https://twitter.com/...
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@ukmattharris
Matt Harris
on x
Bonkers to me that theres all this fuss over Activision and CoD when it's actually King that makes the big bucks https://twitter.com/...
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@zsk
Zoe Kleinman
on x
- Others argue that if Microsoft hoovers up all the best game makers and then makes the titles Xbox exclusives, it won't be fair on anybody else - MS says it wouldn't...but it has already announced that a big new game coming from Bethesda, which it bought, will begin on Xbox only
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@zhugeex
Daniel Ahmad
on x
Final report is due April 26. Here are the possible recommendations outlined atm to address the issues raised. https://twitter.com/... https://twitter.com/...
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@andyplaytonic
Andy Robinson
on x
“Our job is to make sure that UK gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation. We have provisionally found that this may be the case here.”
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@andyplaytonic
Andy Robinson
on x
“The CMA provisionally found that weakening competition by restricting the access that other platforms have to Activision's games could substantially reduce the competition between Xbox and PlayStation in the UK, in turn harming UK gamers.”
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@andyplaytonic
Andy Robinson
on x
Breaking: UK's CMA investigation has provisionally concluded that “Microsoft's proposed acquisition of Activision could result in higher prices, fewer choices, or less innovation for UK gamers.”
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@zsk
Zoe Kleinman
on x
BREAKING: @CMAgovUK's investigation into the proposed Microsoft/Activision merger has provisionally concluded it “could result in higher prices, fewer choices, or less innovation for UK gamers”
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Gameranx
Ryan Parreno
on x
Bobby Kotick: Regulators Are Confused Where Gaming's Competition Is, Japan & China Dominate The Industry
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@deeketweak
Derek Strickland
on x
Activision-Blizzard CEO Bobby Kotick also did an interview with CNBC: “Whether it's the FTC, the CMA, or the EU...they don't know our industry. They're trying to come up to speed and understand the industry better.” https://www.youtube.com/...
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@nicholashirst_
Nicholas Hirst
on x
Activision CEO says CMA “not really using independent thought” in review of MSFT takeover, and seems to call on UK gov. to lean on regulators. T'is an understatement to say this is an odd playbook. https://www.ft.com/...
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@rayminehane
Ray Minehane
on x
Bob lying about jobs but yeah of course Sony are trying to stop the deal https://twitter.com/...
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@hamilbug
Isobel A Hamilton
on x
Kind of amazed Activision/Blizzard sent Bobby Kotick out to bat for this one, but then maybe I shouldn't be 🙃 https://www.ft.com/...
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@jordannovet
Jordan Novet
on x
'"Suddenly, Sony's entire leadership team stopped talking to anyone at Microsoft," Kotick said, adding that his own calls to Sony's chief and other executives were not returned.' https://www.ft.com/...