Microsoft is gearing up to doubtlessly overcome a major hurdle in its acquisition of Activision Blizzard: the UK’s Competition and Markets Authority (CMA).
The regulator, which works to cut back anti-competitive practices in the UK, had beforehand launched an investigation into the $69 billion deal, and launched its provisional findings again in February. At the time, the CMA was involved about a lot of elements of the deal together with potential monopolization of the cloud gaming market, potential Xbox exclusivity of Call of Duty, and discount of competitors with PlayStation.
However, final month, the CMA launched a press release saying one among its key considerations had been addressed, figuring out that if Xbox made Call of Duty unique, it might in the end value the corporate cash. And in the final a number of days, multiple reports have emerged suggesting that the CMA is seemingly to approve the deal when it points its ruling tomorrow.
The New York Post in explicit says the deal has made “surprising progress” in each the UK and the EU not too long ago thanks to Microsoft’s guarantees to give each Sony and Nintendo entry to Call of Duty long-term.
The deal is not fairly accomplished
Should the CMA approve the acquisition, it might nonetheless face difficult in different areas, most notably the EU and the United States. While EU and UK approval would doubtlessly sway the US’s Federal Trade Commission into ruling equally, authorized specialists talking to IGN are divided as to what the FTC is seemingly to do when preliminary hearings start in August. The New York Post’s reporting on the CMA’s presumed ruling, nonetheless, suggests {that a} seemingly victory in the UK would solely make Microsoft extra aggressive in its battle abroad. “They are going to cram this down the FTC’s throats,” one supply stated.
The CMA’s determination will arrive only a day after Microsoft’s Q3 earnings report, which at present reveals gaming income down 4% to $3.6 billion, Xbox content material and providers income up 3% thanks to Game Pass progress, and Xbox {hardware} income down 30% thanks to a previous 12 months comparable elevated by elevated console provide after pandemic shortages.
Rebekah Valentine is a information reporter for IGN. You can discover her on Twitter @duckvalentine.