Microsoft’s attempt at acquiring Activision Blizzard is being brought into question yet again, this time by the UK’s Competition and Markets Authority, whose statement suggested the removal of theCall of Dutyfranchise from the deal. Concerns over Microsoft’s allegedly anti-competitive behavior have been getting brought up ever since the deal was first announced, and while some legislative bodies have already greenlit the deal, others haven’t been near as charitable.
It is self-evident thatCall of Dutyis one of the most important elements of Microsoft’s acquisition of Activision Blizzard. As one of the most popular and performant gaming franchises on the planet,CoDgames have effectively been a mainstay on many a top-selling list over the years, and divesting such a crucial IP from the equation is a rather extreme proposition.
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WhereasMicrosoft expected the UK to oppose its acquisition, the Competition and Markets Authority does seem to be willing to let the deal go through with the aforementioned caveat in place. According to CMA, letting Microsoft acquire Activision Blizzard as-is could lead to “higher prices, fewer choices, or less innovation for UK gamers,” and divesting theCall of DutyIP would lower the risks associated with the deal. While CMA’s proposition does seem drastic, the regulator did say that it would consider other potential solutions, which the interested parties - including Microsoft itself - can propose by February 22. CMA’s final report will be published by April 26, with the final decision contained within.
Earlier this year, Xbox CEOPhil Spencer had confidence in Microsoft’s biggest acquisitionyet, but it’s likely that he didn’t have CMA’s proposed “partial divestiture of Activision Blizzard” in mind while making his statements. Activision Blizzard does have plenty of other properties that would substantially bolster Microsoft’s gaming portfolio, even without takingCall of Dutyinto consideration, but it’s still unclear just how important Microsoft thinks this particular IP is in the grand scheme of things.
It may be worth pointing out thatMicrosoft offered to putCoDon PlayStation Plusalready, in an effort to make the deal more palatable to its rival in the console market space. This solution, however, doesn’t seem to have been all that enticing to some of the biggest government bodies from the EU, US, and UK regulators.
The CMA’s statement is just the latest in a long line of similar comments issued by other global market regulators. TheEuropean Union issued a new warning to Microsoftjust a few days back, citing concerns over its engaging in potentially anti-competitive behavior with the proposed acquisition of Activision Blizzard. So far, things aren’t looking up for the $69 billion deal, but Microsoft remains steadfast in its conviction that the deal will, indeed, end up going through.
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