CMA says Microsoft’s acquisition of Activision Blizzard won’t lessen competition

One step closer?

The UK’s Competition and Markets Authority (CMA) has determined that Microsoft’s planned acquisition of Activision Blizzard won’t lessen competition in the video game space.

“Given the significant losses that this model suggests Microsoft would incur post-merger, under all plausible scenarios, we now place relatively more weight on this evidence when assessing it in the round, together with Microsoft’s behavior following previous acquisitions and its longer-term strategic objectives,” reads an addendum released last week.

“Our assessment also shows that Microsoft has acquired a range of gaming studios and, with very few exceptions, has redirected the efforts of those studios to produce exclusive Xbox games, and now consider that it is not sufficiently conclusive to suggest that Microsoft would have the incentive to foreclose PlayStation.”

The CMA continued to state that the acquisition wouldn’t lessen the UK market for the supply of video game console gaming services.

“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 in charge of the CMA’s investigation.

Perhaps needless to say, Microsoft welcomed the decision.

“We appreciate the CMA’s rigorous and thorough evaluation of the evidence and welcome its updated provisional findings,” said Microsoft’s Rima Alaily in a statement to The Verge. “This deal will provide more players with more choice in how they play Call of Duty and their favourite games. We look forward to working with the CMA to resolve any outstanding concerns.”

We’ll keep you informed as the situation progresses.