UK watchdog wants deeper probe into Microsoft's $69-billion Activision deal
Reuters
Published Sep 15, 2022 07:12AM ET
Updated Sep 15, 2022 03:36PM ET
By Amna Karimi and Radhika Anilkumar
(Reuters) -Britain's antitrust watchdog said on Thursday it would launch an in-depth probe into Xbox maker Microsoft (NASDAQ:MSFT)'s $69-billion purchase of "Call of Duty" maker Activision Blizzard (NASDAQ:ATVI) after the tech giant failed to offer remedies to soothe competition concerns.
The deal, announced in January, will require approval in the United States as well as other major jurisdictions including the European Union and China.
Britain's Competition and Markets Authority (CMA) said earlier this month the takeover of the videogame publisher maker could hurt competition in gaming consoles, subscription services and cloud gaming if Microsoft refused to give competitors access to Activision's best-selling games.
The regulator had given the companies until Sept. 8 to submit proposals to address the CMA's concerns.
On Thursday, the CMA added that Microsoft informed the regulator that it would not be offering any undertakings.
Microsoft did not offer any remedies during the preliminary investigation because the CMA typically prefers significant concessions in the first phase, a person familiar with the matter said.
Microsoft, on the other hand, reiterated its statement from early September saying that it is ready to work with the CMA on next steps and address any of its concerns.
Activision did not immediately respond to Reuters' request for comment.
Reuters previously reported that Microsoft would pay a $3 billion break-up fee if the deal falls through, according to a source familiar with the matter, suggesting the company was confident of winning antitrust approval.
A spokesperson for Microsoft rival Sony (NYSE:SONY) Interactive Entertainment welcomed the CMA's move.
“We welcome today’s announcement by the UK Competition and Markets Authority (CMA) that it has opened a full-scale investigation into Microsoft’s proposed acquisition of Activision.
"By giving Microsoft control of Activision games like Call of Duty, this deal would have major negative implications for gamers and the future of the gaming industry. We want to guarantee PlayStation gamers continue to have the highest quality gaming experience, and we appreciate the CMA’s focus on protecting gamers.”
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.