UK authorities investigate Microsoft’s acquisition of Activision Blizzard

The UK competition regulator announced on Wednesday the launch of an antitrust investigation into Microsoft’s proposed $68.7 billion takeover of video game giant Activision Blizzard.

The investigation into what would be the biggest acquisition in Microsoft’s history will focus on whether the deal could substantially lessen competition — or create expectations that it might.

Microsoft previously said it expects antitrust authorities to examine how the settlement, announced in January, could affect competition in the video game industry, app stores and even in the job markets.

“We hope and feel it is appropriate that regulators take a close look at this acquisition,” Lisa Tanzi, corporate vice president and general counsel at Microsoft, said in a statement Wednesday.

“We were clear about how we plan to run our gaming business and why we believe the deal will benefit players, developers and the industry.”

“We are committed to answering regulators’ questions and ultimately believe that a thorough review will help the deal close with broad confidence and that it will be positive for competition,” added Tanzi.

“We remain confident that the deal will close in fiscal 2023 as initially anticipated.”

As part of the investigation, the UK Competition and Markets Authority (CMA) is soliciting public opinion on the matter by 20 July.

Based on the record, the CMA can decide whether a more detailed investigation is necessary. The agency has a September deadline to make that decision, although the exact date may change.

Microsoft sought to preempt regulatory scrutiny surrounding its deal, which it said would make the company the world’s third-largest game publisher after Tencent and Sony. (Sony announced in February that it was buying game studio Bungie for $3.6 billion, in another deal that contributes to industry consolidation.)

Getting rid of regulatory concerns has become Microsoft’s global mission.

In February, it announced several commitments that will apply to its gaming business to avoid any concerns that its position as guardian could give it anti-competitive influence over game publishers or software developers, an allegation that has plagued Apple and Google across the board. world.

“It really suits us to move quickly and proactively and be very transparent about how we’re going to run this business, with a clear eye on the competition law issues and responsibilities that we have,” Microsoft President Brad Smith told reporters at the time. .