The UK’s Competition Markets Authority (CMA) has updated its provisional findings, and it seems to be going in Microsoft’s favor. The tech giant’s 68.7 billion acquisition has been under heavy scrutiny by Sony and government regulators over concerns of its potential negative impact on industry competition and cloud gaming.
Following months of investigation, the CMA published its provisional findings in February and accepted responses from third-party organizations as it moved towards its final decision date. It’s due to these responses and new evidence that had the CMA updating its findings in favor of Microsoft. The CMA found that instead of Microsoft being incentivized to making Activision Blizzard games exclusive, they found that it would be a loss for them if they chose to do so. When it came to the potential harm that exclusivity would to competetors like PlayStation, the CMA had no evidence that the acquisition would harm its rival.
“Having considered the additional evidence provided, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action.” said Martin Coleman, chair of the independent panel of experts conducting this investigation.
That said, while the CMA has changed its stance on competition, it remains critical on the acquisition’s potential impact on cloud-gaming. The CMA will continue to consider the responses towards its investigation as it draws closer to issue its final report by 26 April 2023. Sony and the FTC remain steadfast in their scrutiny over the acquisition, despite Microsoft’s many attempt at easing their concerns with remedies. Regardless, this development is another major step in Microsoft’s quest for the acquisition’s approval.
“The CMA’s updated provisional findings show an improved understanding of the console gaming market and demonstrate a commitment to supporting players and competition,” said Lulu Cheng Meservey, head of communications for Activision Blizzard. “Sony’s campaign to protect its dominance by blocking our merger can’t overcome the facts, and Microsoft has already presented effective and enforceable remedies to address each of the CMA’s remaining concerns. We know this deal will benefit competition, innovation, and consumers in the UK.”