Microsoft under fire from competition regulators over acquisition of Call of Duty video game maker Activision
Microsoft’s £50 billion mega deal with Call of Duty video game maker Activision Blizzard hit a snag when the competition regulator raised concerns about the connection.
The Competition and Markets Authority (CMA) said the merger could “materially reduce” competition in the games market if Microsoft denied its competitors access to some of Activision’s key titles.
Microsoft makes the Xbox line of video game consoles and has been in a battle for dominance with Japanese giant Sony, creators of the PlayStation, for years.
Battle for Dominance: Call of Duty is one of the most popular titles from the video game manufacturer Activision
The CMA said Activision’s merger with Microsoft could allow the tech giant to use games to “damage” competition in the growing cloud gaming market, which allows consumers to stream games to their devices, similarly as offered by Netflix for movies and TV shows.
As a result, the watchdog said Microsoft and Activision have five working days to submit proposals to address their concerns, or the merger would face an in-depth Phase 2 investigation.
