UK Competition Authority: Microsoft and Activision merger will ‘damage competition’

The UK Competition and Markets Authority (CMA) believes that the deal between Microsoft and Activision Blizzard could lead to less competition in the cloud gaming industry, as well as cause problems related to console games. Relevant information is contained in the preliminary results of an investigation into a potential deal.

According to the CMA, Microsoft’s purchase of Activision Blizzard “could result in higher prices, less choice or less innovation for UK gamers”. The regulator also stressed that Microsoft dominates PC operating systems (Windows) and cloud infrastructure (Azure and Xbox Cloud Gaming).

These are preliminary results, which means that interested parties can offer solutions to issues that have raised CMA concerns. The deadline for responding to this case is March 1, 2023.