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London Says Microsoft-Activision Merger Risks Harm to Consumers

2023-02-08T16:14:35.012Z


The British regulator believes that this alliance “could result in higher prices, less choice and less innovation for British players”.


The merger between the American computer giant Microsoft and the American video game publisher Activision Blizzard could harm consumers, according to the British competition regulator (CMA), according to preliminary results of an investigation published on Wednesday.

The "

CMA concludes on a preliminary basis that the acquisition of Activision proposed by Microsoft could result in higher prices, less choice and less innovation for British gamers

", details the CMA in a press release, which leaves to hear that it could subsequently take measures to thwart this merger.

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Worried about the consequences of this operation on the British market, the CMA announced in mid-September the opening of an in-depth investigation into the takeover, announced in early 2022, of Activision Blizzard by Microsoft.

In its statement Wednesday, the CMA said preliminary findings from its investigation show that buying one of the world's largest game publishers would "

strengthen the strong position and significantly reduce competition compared to what Microsoft would face without this in the UK digital games market

”.

"

This could alter the future of the games industry, and potentially hurt UK gamers, especially those who don't want to buy an expensive games console or computer

," the CMA adds.

The British regulator could later decide on corrective measures such as partial disposals of assets, or even decide on an outright ban on the operation.

The takeover of Activision Blizzard, which notably publishes the hits “

Call of Duty

”, “

World of Warcraft

” and “

Candy Crush

”, by Microsoft for the record sum for the sector of 69 billion dollars, would give rise to the third largest player in the video game industry in terms of turnover, behind the Chinese group Tencent and the Japanese Sony, manufacturer of the PlayStation.

In addition to the United Kingdom, the United States and the European Union are concerned about this mega-merger.

The US competition authority (FTC) in December launched lawsuits to block the deal and the EU opened an investigation into whether the acquisition would make Activision's games exclusive to Xbox, the game console marketed by Microsoft.

SEE ALSO

- Microsoft presents its new search engine that integrates artificial intelligence

Source: lefigaro

All news articles on 2023-02-08

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