The UK M&A watchdog is against the Microsoft gaming merger.

If Microsoft’s $69 billion purchase of Activision is approved, gamers would see higher costs, fewer options, and less innovation, according to the CMA.

This is the preliminary finding of the Competition and Markets Authority’s in-depth inquiry, according to Telecoms.com.

The UK M&A watchdog has been keeping an eye on the transaction since last July and determined in September that a deeper examination was necessary.

The bottom line is that Microsoft already has a dominant position in the console and cloud gaming marketplaces as a result of a number of resources, including its Windows operating system, Xbox console line, and Xbox Cloud Gaming Service.

By allowing it to buy the publisher of some of the most well-known video game franchises, such as Call of Duty, Overwatch, Warcraft, and Candy Crush, Microsoft will have the resources and motivation to make those franchises accessible only on its own gaming platform.

platforms, making it much more difficult for competitors like Sony, the creator of the PlayStation, and, to some degree, Nintendo, to draw people to their goods and services.

Microsoft might affect its competitors even if it didn’t make Activision’s games explicit exclusives by, for instance, delaying the availability of such titles on PlayStation.

“Our responsibility is to ensure that gamers in the UK are not caught in the crossfire of international agreements that, over time, may harm competition and lead to higher pricing, fewer options, or less innovation.

Martin Coleman, head of the impartial team of experts that conducted the CMA inquiry, said that we have tentatively determined that this may be the case in this instance.

According to Coleman, there are an estimated 45 million gamers in the UK, and they spend more money on gaming than they do on movies, music, TV shows, and books combined.

He said that this group has profited from intense rivalry between Xbox and PlayStation, which have spent the previous 20 years competing to provide the most cutting-edge services.

Miniechat

See author's posts