LONDON (Reuters) – Microsoft’s $69 billion buyout of video game publisher Activision Blizzard raises competition concerns over online games and consoles, Microsoft said on Wednesday. competition authority following an in-depth investigation.
A merger between the computer giant, maker of the Xbox game console, and the publisher of the famous video game franchise “Call of Duty” could weaken the “important rivalry” between Sony’s XBox and PlayStation consoles, which could drive up device prices and limit choice for millions of gamers, the UK’s Competition and Markets Authority (CMA) has estimated.
“Our job is to ensure that UK players are not caught in the crossfire of global deals which over time could harm competition and lead to higher prices, less choice or less innovation,” said CMA survey manager Martin Coleman.
“So far we’ve seen that might be the case here,” he added.
The CMA said it would review responses from the companies involved and other interested parties before releasing its final report by April 26.
A spokesperson for Activision Blizzard said it hopes to help the regulator better understand the gaming industry by the time the final report is released.
Microsoft, which has pledged to keep “Call of Duty” on PlayStation, said it was also determined to address concerns raised by the UK competition regulator.
“We are committed to delivering effective and easily enforceable solutions that address CMA concerns,” Microsoft Vice President and Assistant General Counsel Rima Alaily said in a statement.
“Our long-term commitment to grant 100% equal access to ‘Call of Duty’ to Sony, Nintendo, Steam and others preserves the benefits of the agreement for gamers and developers and increases competition in the marketplace,” said Rima Alaily, the company’s vice president and associate general counsel.
The takeover plan is also being examined by regulators in the United States and Europe.
Sources familiar with the matter told Reuters in January that Microsoft risked receiving a warning from the European Commission over its bid for Activision.
In the United States, the US Federal Trade Commission, the American policeman of competition, indicated in December that it had initiated proceedings aimed at blocking the takeover of Activision by Microsoft, saying that it feared a serious harm to competition.
(Report Paul Sandle and Aby Jose Koilparambil; French version Lina Golovnya, edited by Blandine Hénault)
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