Recently, the UK’s competition regulator has closed its antitrust investigation into the union of Microsoft and Activision. The Competition and Markets Authority (CMA) announced that, after closely examining the merger, it concluded that the combination of Microsoft and Activision does not raise any competition concerns in the UK markets.
The merger between the two giant companies – software giant Microsoft and video game developer Activision – was announced back in September 2019. At the time, Microsoft revealed plans to buy out the entire stock of Activision, a larger move that integrated a major gaming company into Microsoft’s already existing portfolio.
The CMA opened an investigation into the merger in October 2019 due its potential implications on competition in the UK gaming market. After engaging in detailed market inquiries and gathering documents, the CMA concluded that none of the potential concerns raised by the merger were indeed present.
The CMA’s Chief Executive Andrea Coscelli explained that “The merger between Microsoft and Activision Blizzard initially raised questions about the potential impact it could have on the video games development sector in the UK. We assessed the transaction thoroughly and have found that it does not give rise to competition concerns.”
As such, the CMA was convinced that the Microsoft/Activision union would not lead to a substantial reduction in competition in the UK gaming market. Microsoft welcomed the outcome of the CMA’s investigation and stated that it is “pleased with the ruling and will continue to work closely with the CMA to ensure compliance with all applicable competition laws in the UK.”
Despite the somewhat surprise ruling from the CMA, the decision was definitely a welcome one to both Microsoft and Activision. With the CMA’s inquiry now closed, the two corporate giants can continue their planned merger as normal and promote innovation and competition in the UK market.
