The UK's CMA says Microsoft's $69B Activision Blizzard acquisition will require an in-depth review and gives Microsoft a September 8 deadline to offer remedies
The CMA had already opened an antitrust investigation with a September 1 initial-decision deadline. Its move to demand remedies before deciding whether to proceed to an in-depth review turns that timetable into a negotiation over the Activision acquisition’s UK gaming-market effects.
Microsoft must present remedies by September 8 or face an in-depth CMA review, giving the regulator immediate leverage over the deal’s terms.
Activision Blizzard remains in a prolonged approval process while Microsoft and the CMA test whether proposed commitments resolve the regulator’s concerns.
A deal structure acceptable to the CMA may require Microsoft to alter rights arrangements rather than simply defend the original acquisition terms, as the later Ubisoft-rights proposal indicates.
Third-order effects
If regulators continue to require rights-based remedies for major gaming acquisitions, transaction design will increasingly determine whether platform owners can consolidate content libraries.
The CMA’s progression from investigation to a block and then consideration of a revised offer points to a regulatory model in which large digital-media deals can be reworked rather than treated as a binary approval decision.
The trend: Large gaming-platform acquisitions are being shaped by competition remedies that can redistribute content rights and materially redesign the original deal.
I'm not sure the CMA is familiar with the gaming industry when it says Microsoft has a “strong position in gaming consoles...” Is third place a strong position? • PlayStation 4: 117.2 million sales • Nintendo Switch: 111 million sales • Xbox One: ~58 million sales
I've read through the CMA's decision on Microsoft's Activision deal. It's written like they want to protect Sony's #1 position in gaming, while also claiming there isn't much competition to Call of Duty (?!). Millions of people still play CS:GO every day and Apex Legends is huge …
Phil Spencer published a letter today explaining Microsoft's view on the deal once again: ‘gaming for everyone, everywhere’ He also confirms that Overwatch, Diablo and Call Of Duty are headed to Game Pass https://blogs.microsoft.com/ ... https://twitter.com/...
UK regulator on MS-Activision. deal: “we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including .. rivals in multi-game subscription services and cloud gaming.” https://www.gov.uk/...
Have no doubt, behind the scenes Sony is concerned about the MS Activision Blizzard deal and is actively sharing its side of the argument. This deal could take a long time to go through
From the start, this is what I've said was the most likely argument for “aggressive” antitrust enforcement. “...[MS] could leverage [ABK] games together with [MS] strength across console, cloud, and PC [OS] to damage competition in the nascent market for cloud gaming services.” h…
“The CMA is concerned that having full control over this powerful catalogue, especially in light of Microsoft's already strong position in gaming consoles, operating systems, and cloud infrastructure could result in Microsoft... impairing Sony's ability to compete”
We've been investigating @Microsoft's anticipated $69 billion purchase of @ATVI_AB and have discovered that the deal could substantially lessen competition in: 🎮 gaming consoles 🖲️ multi-game subscription services ☁️ cloud gaming services https://twitter.com/...
#Microsoft and #Activision #Blizzard now have 5 days to make proposals to address our concerns. If any proposals made are not sufficient, we'll explore this deal in more depth to reach a decision that works for UK gamers and businesses. Find out more: https://www.gov.uk/...
Microsoft has repeatedly brought up its multiplatform approach to Minecraft to assuage regulators that it won't make Call of Duty exclusive. But I keep bringing up the murkiness around Elder Scrolls VI. It looks like I'm not the only one who's noticed https://assets.publishing.se…
Microsoft says it is “ready to work with the CMA on next steps” reaffirms commitment to making the same games available on the same day on both Xbox and PlayStation https://www.gamesindustry.biz/ ...
CMA has a point. Call of Duty really doesn't have a direct rival in the games market. Call of Duty is set to get even bigger with Warzone 2/Warzone mobile and others we don't know about. Plus Microsoft can't say if COD remains multiplat in perpetuity. https://www.gov.uk/...
UPDATE: Activision Blizzard CEO Bobby Kotick says regulatory approval of Microsoft's acquisition is “generally moving along as we expected”, still expects deal to complete by June 30, 2023 https://www.gamesindustry.biz/ ...
The Competition and Markets Authority said today it's concerned Microsoft's deal “could harm rivals ... by refusing them access to Activision Blizzard games or providing access on much worse terms.” https://www.axios.com/...