Microsoft and Activision Blizzard merger received mostly favorable responses in the UK, regulator says

The United Kingdom’s Competition and Markets Authority released on Wednesday a summary of the public opinion it received regarding the proposed Microsoft and Activision Blizzard merger. And the regulator reported that the majority of the comments submitted were in favor of the acquisition.

In its issues statement, the CMA said it reviewed 2,100 emails from the public. Three-quarters (or over 1,500 emails) of those responses were “broadly in favor” of the merger, while the remaining quarter was “broadly against” its approval. The regulator added that only a small number of responses did not express a clear stance on the merger.

The statement also presented a summary of the arguments expressed by the public, which included 14 views in favor of and 11 views against the merger. One of the common opinions about the acquisition says it would allow Microsoft to better compete with Sony and Nintendo in the console gaming space.

People in favor of the merger also believe that Microsoft is unlikely to make “Call of Duty” exclusive to Xbox because of the first-person shooter franchise’s multiplayer elements. In the past, Microsoft told Brazilian regulators that not releasing “Call of Duty” on other platforms “simply wouldn’t be profitable.”

Those in favor of the merger also told the CMA that Microsoft’s attempt to acquire Activision Blizzard is merely a “reaction” to Sony’s practice. Some have pointed out the PlayStation maker’s history of entering deals involving cross-platform games like “Final Fantasy” and “Silent Hill” that led to “exclusive content or early access” offers for PlayStation users.

Meanwhile, some who disagree with the merger argue that Microsoft already dominates the PC operating system space. And the company could replicate that position in the gaming industry if the merger is approved.

Others also noted that the Microsoft and Activision merger would be the largest-ever merger in the gaming industry. They are concerned that, when approved, it would send a signal that other major publishers like EA, Ubisoft, and Take-Two Interactive can be acquired as well, potentially leading to a significant concentration of the gaming market.

Some are not convinced that Microsoft will not make “Call of Duty” exclusive to Xbox after the merger is finalized. When that happens, they argue that it could harm consumers, especially those who cannot afford to buy another gaming console.

The CMA started its Phase 2 investigation of the merger last September, and it is slated to post its decision in March 2023. The European Commission has also launched an in-depth inquiry. Meanwhile, the U.S. Federal Trade Commission has filed a lawsuit to block the acquisition.

Photo by Sam Pak on Unsplash