- Microsoft Corp.
- 15 September 2022 13:28:47
Source: Sharecast
The CMA will look to determine if the merger may undermine competition in the UK video games market in an investigation that will last until March 2023.
After its "Phase 1 investigation" the CMA said it had concerns that the proposed merger could "harm rivals" and result in a "substantial lessening of competition".
"The CMA is concerned that Microsoft could leverage Activision Blizzard's games together with Microsoft's strength across console, cloud, and PC operating systems to damage competition in the nascent market for cloud gaming services," said the CMA.
The CMA gave Microsoft a deadline of 8 September to address its worries before referring the case for further investigation.
As of 1325 BST, Microsoft shares were down 0.45% in pre-market at $251.08 each, while Activision Blizzard shares dipped 0.26% to $76.40 each.
Reporting by Iain Gilbert at Sharecast.com