Microsoft had planned $69 billion purchase of Activision Blizzard Inc. which would be sent for an in-depth review unless the tech giant would provide remedies to address the UK watchdog’s issues. 

HIGHLIGHTS
A deadline was given to Microsoft in order to come to an acceptable agreement
Combination with Activision owns Call of Duty, World of Warcraft and Guitar Hero
The British agency has taken a lot forceful approach on recent deals

On Thursday, the Competition and Markets Authority had mentioned that it was concerned regarding a substantial decrease of competition within the gaming consoles, multi-game subscription services and cloud gaming markets. A deadline of September 8 was given to Microsoft in order to come to an acceptable agreement with the agency.

The combination with Activision, that would own some of the popular franchises which would include Call of Duty, World of Warcraft and Guitar Hero. It had created Microsoft the world’s third-largest gaming company and would boost the Xbox maker’s roster of titles for its Game Pass subscribers.

The CMA in a statement has mentioned that it was concerned that Microsoft may use Activision’s games along with its own strength within the console, cloud and PC operating systems market to break competition within the developing cloud market.

Sorcha O’Carroll, the senior director of mergers have mentioned that “We were worried that Microsoft may use its control over popular games like Call of Duty and World of Warcraft post-merger to hurt rivals, along with recent and future rivals in multi-game subscription services and cloud gaming.”

The British agency has taken a lot forceful approach on recent deals, significantly by the largest technology companies. Microsoft has declared that it had been purchasing the Activision in January in what was the largest ever gaming industry deal.

Microsoft's President and Vice Chairperson Brad Smith has mentioned that “We were all ready to work with the CMA on next steps and address any of this concerns.' The person added “Sony being the industry leader mentioned that it was worried about the Call of Duty, however we had mentioned that we were committed to creating a similar game which was available on the same day on both Xbox and PlayStation.” 

The CMA had joined different world regulators which would include the US Federal Trade Commission in examining the deal and previously it had mentioned that it was working collectively to review the tie-up. Regulators were seemingly to appear closely at how the Microsoft’s ownership of Activision may hurt rivals by limiting their access to the company’s biggest games.

The deal was automatically referred as in-depth investigation if Microsoft would not provide any appropriate proposals. A CMA phase 2 review would permits for a lot thorough investigation of internal information and document requests.

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