The UK CMA opposes Microsoft’s ActiBlizz acquisition, proposes remedies

As anticipated, the UK's Competition & Markets Authority (CMA) has confirmed that it believes Microsoft's proposed acquisition of Activision Blizzard would harm the UK market. The CMA confirmed its concerns in documents released today, but it has also sent a list of potential remedies to Microsoft. 

The CMA has concluded its investigation into the deal, finding that if allowed to go through uncontested, it “could result in higher prices, fewer choices, or less innovation”. It is important to note that this part of the decision does not take into account Microsoft's proposed ten-year deal to keep Call of Duty on multiple platforms, from PlayStation, to Steam and even Nintendo consoles. However, Microsoft's planned license deal will be taken into account when discussing remedies.

Aside from all of the Call of Duty drama, the CMA has concerns that Microsoft's acquisition could help it obtain an unmatchable position in the cloud market.

As far as potential remedies go, the CMA has suggested that Microsoft partially divest in Activision by selling off Call of Duty, or the entire company. These remedies are unlikely to be palatable to Microsoft, but it may be able to find a way to convince regulators with less extreme measures.

The CMA's final report on this matter should arrive by the 26th of April.

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KitGuru Says: It looks like talks with regulators are finally reaching a conclusion point. Microsoft claims it is still confident in the acquisition, but as we saw with Nvidia's failed Arm acquisition, companies will continue to preach confidence in the face of mounting adversity, right up until regulator talks reach a final breaking point.

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