UK expands investigation into Activision Blizzard purchase; Could they stop the acquisition?

For people who are unaware of what is happening with the purchase of Activision Blizzard by Microsoft, we explain that it is a fairly long and complex process. There are many filters to consider the purchase approved since you want to avoid damage to other companies in the industry and monopolistic practices.

We previously commented on how this purchase has already been approved in other countries. Still, the UK Competition and Markets Authority (CMA) is making the purchase process longer due to detailed investigations where they precisely seek to avoid harm to other companies.

First, an investigation was carried out, and Microsoft was given a time limit to defend its purchase, which you can see the answer by clicking on this link. However, the CMA has decided to start a new investigation stage despite Microsoft's response.

In case you missed it: UK defends Sony over Microsoft's purchase of Activision Blizzard

This means that the CMA’s will analyze in greater depth the agreements between companies and the possible impact that the purchase of the studio could have on the business of other companies, such as PlayStation. The CMA asked Microsoft to submit tests and proposals to clear all doubts and concerns in this regard; however, the company will not do so at this stage.

“The CMA has referred Microsoft Corporation's anticipated acquisition of Activision Blizzard Inc. for further investigation, on the basis that, based on currently available information, it is or may be the case that this merger could result in a material lessening of competition in a market or markets in the United Kingdom," the CMA said.

Shortly after confirming this news, Sony made a small statement showing satisfaction with the CMA's decision.

“By giving Microsoft control of Activision games like Call of Duty, this deal would have significant negative implications for gamers and the future of the video game industry. We want to ensure that PlayStation gamers continue to have the highest quality gaming experience and appreciate the CMA's focus on protecting gamers," Sony said.

Source 1, 2

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