Source: Sharecast
Microsoft announced in January that it had agreed to buy 'Call of Duty' and 'Candy Crush' maker Activision for $95 per share in cash.
The competition watchdog said it was concerned the deal could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services (game streaming).
Sorcha O’Carroll, senior director of Mergers at the CMA, said: "Following our Phase 1 investigation, we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming.
"If our current concerns are not addressed, we plan to explore this deal in an in-depth Phase 2 investigation to reach a decision that works in the interests of UK gamers and businesses."
Microsoft and Activision Blizzard now have five working days to submit proposals to address the CMA’s concerns. If they do not, the deal will be referred for an in-depth probe.