The antitrust authority has set September 1 as the current deadline to announce its ‘Phase 1’ decision
The antitrust authority has set September 1 as the current deadline to announce its ‘Phase 1’ decision
The U.K.’s competition regulator said on Wednesday it is investigating Microsoft’s $68.7 billion proposed acquisition of ‘Call of Duty’ maker Activision Blizzard.
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The antitrust authority has invited comments on the deal from “any interested party” to assist it with this review. It has set September 1 as the current deadline to announce its ‘Phase 1’ decision – whether to refer the deal for a deeper ‘Phase 2’ inquiry, it noted.
“The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” the U.K. watchdog said.
The acquisition, expected to close in the fiscal year 2023, would be Microsoft’s largest-ever and the biggest gaming industry deal. It would accelerate the growth in the Xbox maker’s gaming business, making it the world’s third-largest gaming firm by revenue, behind Tencent and Sony, after the deal closes.
Understandably, the big gaming industry acquisition has come under the regulatory radar, with the Federal Trade Commission also looking into the deal. Earlier, Microsoft’s acquisition of AI speech firm Nuance for $19.7 billion was scrutinised by antitrust authorities, but later it received the regulatory green light.
Last month, the Communications Workers of America (CWA) sent a letter to the FTC to support Microsoft’s proposed acquisition of Activision Blizzard in light of the ground-breaking labour neutrality agreement between CWA and Microsoft.
While the deal awaits regulatory clearances, it received the approval of Activision Blizzard stockholders in April, with over 98% of the shares voted at a special meeting in favour of the proposed transaction with Microsoft.
