Activision Merger Won't Lessen Competition in Console Gaming, Says UK Regulator

As part of an ongoing investigation, Microsoft recently told UK regulators that a 10-year deal is enough for their business rival Sony Interactive Entertainment to develop alternatives to Call of Duty franchise for all PlayStation consumers.

With concern over Activision/Blizzard deal, UK regulators previously extended their inquiry and Microsoft continued arguing. After months of investigation, UK regulators reveal that Activision merger won't lessen competition in gaming.

Updating their provisional findings, UK's Competition and Markets Authority (CMA) claims they no longer believes that a proposed $69 billion acquisition of Activision/Blizzard will significantly lessen competition in console gaming space.

CMA admits that they received fresh evidence that eased some of their worries regarding Xbox owning Activision. They initially thought that making Call of Duty exclusive will be commercially beneficial but it will be actually loss-making.

In a merger process, provisional findings offer businesses and interested third-parties a chance to respond before final decision. CMA investigation on ABK acquisition concluded that ongoing merger won't lead to decline in competition.

UK regulators think Microsoft to withhold Call of Duty from PlayStation would hurt them more than any gains. However, they are concerned over cloud gaming market being affected by ABK buyout and CMA will continue investigating.

In order to address their concerns, Microsoft recently announced to bring Call of Duty to many cloud gaming platforms as well. After recent provisional findings, chances of Activision/Blizzard deal getting approved have really increased.

Microsoft previously offered Sony 10-year deal to keep Call of Duty on PlayStation but they had no interest in any agreement. Activision CEO Bobby Kotick has accused Sony of trying to disrupt their ongoing buyout by Xbox owner earlier.