UK's CMA extends investigation on Microsoft and Activision Blizzard deal

(Image Courtesy: Reuters)

United Kingdom's Competitions and Markets Authority (CMA) has extended its timeline for the investigation of Microsoft's proposed acquisition of Activision Blizzard.

The CMA said that it would now publish its findings from phase two of the investigation on April 26, 2023. The previous deadline was March 1, 2023.

According to GamesIndustry.biz, the watchdog said that despite the new date, it aims to complete its report, "as soon as possible and in advance of this date."

The reason given for the delay was the complexity of the investigation which would require parsing through a, "large volume of evidence, as well as main party and third party submissions."

In December of last year, The CMA held hearings with the companies involved, as well as going through requests and submissions from both parties. This process is expected to continue in January.

The CMA plans to wrap up the hearings by the middle of February, and the final deadline for Microsoft and Activision Blizzard to submit requests or evidence will be March 2023.

The deal is currently under investigation by three separate regulatory authorities. The United States Federal Trade Commission filed a lawsuit against Microsoft to prevent the deal in December last year, while the European Union has sent out questionnaires to game developers, distributors and the general public for their opinion.

Sony, Microsoft's biggest rival in the console space, has not been shy about talking to authorities as well. It has been particularly concerned about Microsoft's handling of the lucrative Call of Duty franchise post merger.

It fears that Microsoft will make it exclusive to their platforms, despite Microsoft openly stating that it's in the company's best interests to keep Call of Duty multiplatform.

The only silver lining so far has been the 10-year deal with Nintendo that brings Call of Duty to their platforms, and Valve Software founder Gabe Newell speaking out in support of the Redmond-based technology giant.

Microsoft first announced the acquisition in January last year, and since then has been fighting a growing list of battles to push the deal through.

It is racing against the clock to close the deal before July 18, otherwise it would be forced to pay a fee of $3 billion and the deal would expire.