UK anti-trust watchdog wants in-depth probe into Microsoft's Activision deal

(Image Courtesy: Microsoft)

Microsoft Corp’s $69- billion deal to acquire video game maker Activision Bilzzard faces an in-depth probe by the UK Competition and Markets Authority (CMA) over concerns that the acquisition is anti-competitive.

The anti-trust watchdog said that it would undertake a thorough investigation after Microsoft failed to provide adequate reasoning to curb competition concerns, media reports said.

Microsoft in January announced it was in the process of acquiring "Call of Duty" publisher Activision for $69 billion, making it the largest sale in the history of the industry.

Since then the Xbox maker has had to defend its proposed acquisition amid concerns from the competition and would require approval for the deal in major markets like the United States, European Union and China.

Earlier this month, Britain's anti-trust watchdog said the acquisition could hurt competition in gaming consoles, cloud gaming and subscription services if Microsoft refused access to Activision published games on competing hardware.

The regulator had set a September 8 deadline for Microsoft to address the CMA's concerns. Microsoft has decided that it would not offer any undertakings.

The Redmond-based technology giant has said it is ready to work with the CMA and address any concerns it might have.

Microsoft's rival Sony Interactive Entertainment told Reuters that it "welcomed the move" and "by giving Microsoft control of Activision games like Call of Duty, this deal would have major negative implications for gamers and the future of the gaming industry. We want to guarantee PlayStation gamers continue to have the highest quality gaming experience, and we appreciate the CMA’s focus on protecting gamers.”

(with agency inputs)