UK watchdog finds that Microsoft Activision deal could lessen competition

A UK watchdog said Microsoft's plan to buy Activision Blizzard could substantially reduce competition in consoles, game streaming, and multi-game subscription services.

Microsoft wants to buy Activision Blizzard, the maker of Call of Duty, Overwatch, and Candy Crush, for $68.7bn. But the Competition and Markets Authority of the UK says its concerns mean it may now carry out an in-depth probe. The deal will be the Xbox maker's largest acquisition if it goes through.

The games Activision Blizzard made are some of the most famous in the world. But the company has previously faced accusations of permitting a sexist and toxic workplace culture. In the ruling, the CMA said that if Microsoft bought Activision Blizzard, it might harm rivals "by refusing them access to Activision Blizzard games or providing access on much worse terms."

Microsoft President Brad Smith said they are ready to work with the CMA on the next steps and address any of its concerns. The president addressed Sony and said that as the industry leader, it is worried about Call of Duty. He ensured that Microsoft was committed to making the same game available on the same day on both PlayStation and Xbox. According to Mr. Smith, the technology giant wants people to have more access to games. Microsoft maintains that the principal interest of the company in the planned acquisition is Activision Blizzard's expertise in mobile gaming.