Microsoft welcomes CMA’s turnaround.
The CMA, the UK competition authority, is changing its stance on Microsoft’s desired acquisition of Activision Blizzard (via gov.uk). They no longer have any concerns that Microsoft does Call of Duty exclusively, as it is believed that Microsoft has more to lose than to gain from such a move. Microsoft has also made it clear that Sony (and Nintendo) will get ten years Call of Duty-game.
The CMA said in February that the deal raised questions, but new evidence should clear them up.
The updated analysis shows that it would not be a commercial advantage for Microsoft to make CoD exclusive after the deal is closed, but instead that Microsoft has an incentive to continue making the series available on Playstation.
A point that Microsoft, for its part, has firmly stood by, which now also welcomes the CMA’s turnaround. Microsoft believes that CMA on one “rigorous” and “fair” approach to the material.
An Activision spokesperson (via VGC) for its part believes that Sony cannot get around this.
Sony’s campaign to protect its dominance by blocking our merger cannot get around this, and Microsoft has already presented effective and powerful remedies to the CMA’s remaining concerns. We know the deal will boost competition, innovation and consumers in the UK.
The CMA has thus not yet given its final answer. On the one hand, they say that they do not believe that the deal will, in a significant way, inhibit console competition. On the other hand, they want to emphasize that their question marks regarding cloud gaming continue. At the end of April, CMA notification should come.
Activision regular Bobby Kotick has previously warned that the UK could become a “Death Valley” (rather than Silicon Valley) if they block Microsoft’s takeover of Activision Blizzard.
