The UK's Competition and Markets Authority (CMA) has published its provisional findings in the ongoing investigation about Microsoft's pending Activision Blizzard acquisition. The $68.7 billion deal has been in active conversation for a while, mostly due to concerns by regulators over the implications of Microsoft acquiring Activision. Recently, the CMA has revealed what it believes some of those implications would mean for the industry.
Concerns over Microsoft's potential monopolistic power have been growing since the deal was announced last year. While regulatory bodies like the FTC, the CMA, and the EU have already put the spotlight on the issue, its most vocal opposition has come from Sony. The rival company has been continuously making the argument that the Activision deal would only serve to harm PlayStation and industry competition as a whole. Microsoft has since retaliated by signing 10-year deals with Nvidia Geforce Now, Boosteroid, Ubitus, and Nintendo with the company indicating that there will be more similar announcements in the future. The Xbox maker even offered a compromise to the EU in hopes of getting the green light for the deal.
Now, the CMA has issued its provisional findings in its investigation, signaling potential implications for Microsoft's pending acquisition. As per its findings, the CMA has provisionally concluded that the Activision Blizzard deal "will not result in a substantial lessening of competition in relation to console gaming." The regulator further claims that the cost of withholding IPs like Call of Duty from PlayStation "would outweigh any gains from taking such action." Incidentally, Microsoft made similar comments earlier where Xbox claimed removing Call of Duty from PlayStation would make zero sense for the company.
It should be noted that the issue regarding competition in console gaming services is only part of the issues raised by the CMA and the regulatory body is still investigating the Activision deal's pending impact on the cloud gaming market. The CMA previously raised concerns on how Microsoft acquiring Activision Blizzard may translate to a monopoly in cloud gaming where the tech giant may hold as much as 60 to 70 percent of the market. While Xbox continues to grow its influence in cloud gaming, the CMA will publish its conclusion on the overall investigation via its final report which is due by April 26, 2023.
Of course, the final verdict on the Activision Blizzard purchase is yet to be delivered, but recent findings strongly suggest that regulators may go in favor of Microsoft. The company is already seemingly prepping up for its post-acquisition plans as it's recently hinted that an Xbox-branded mobile gaming store may launch in 2024 on Android and iOS. Although this would depend on the Activision deal going through and the upcoming Digital Markets Act, it's an indication of Microsoft's confidence that it will come out on the winner's side.