Games: British competition watchdog puts the brakes on Activision deal

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Games
British competition authorities put the brakes on the Activision deal

The Activision Blizzard booth at the Electronic Entertainment Expo. Microsoft faces lengthy investigations in the UK over its takeover of video game giant Activision Blizzard. photo

© Jae C. Hong/AP/dpa

Microsoft wants to get video games like “Call of Duty” under its roof with the purchase of Activision Blizzard. So far, competition authorities have put a few obstacles in the way of the mega deal. Now also in Great Britain.

Microsoft faces lengthy investigations in the UK over its takeover of video game giant Activision Blizzard. The British competition authority CMA made it clear on Wednesday that its veto on the deal could not be easily reversed. Companies could no longer offer further concessions once an investigation was completed, the CMA stressed. Instead, they would have the option of restructuring the takeover – but this could necessitate a complete new competitive review.

The resistance of the British antitrust authorities is the last hurdle for the mega deal, which costs around 69 billion dollars. On Tuesday, Microsoft was a big step closer to success: a judge in San Francisco rejected the US government’s request to block the deal with an injunction. As a result, Microsoft and Activision Blizzard decided to suspend the appeal process against the CMA veto in Great Britain for new negotiations with the competition authorities.

Microsoft and Activision Blizzard announced the acquisition in January 2022. The Xbox group Microsoft wants to secure popular video games such as “Call of Duty”, “Overwatch” and “Candy Crush” with the acquisition.

Microsoft and Activision Blizzard originally set July 18 as the deadline for closing the deal. You can also make a new appointment – but this could involve new negotiations on the terms. If the deal fails, Microsoft will have to pay Activision Blizzard a $3 billion penalty.

dpa

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