The Competition and Markets Authority (CMA) in the UK has extended the deadline for making its final ruling regarding Microsoft’s acquisition of Activision Blizzard from July 18, 2023 to August 29, 2023.
CMA’s extension follows Microsoft submitting a revised proposal to address their concerns regarding acquisition. Microsoft made numerous commitments as part of this proposal that will meet CMA requirements; these commitments include:
- Selling off Activision Blizzard’s streaming technology.
- By giving rivals access to Activision Blizzard games.
- Without abusing its market power to raise prices.
The CMA is currently reviewing Microsoft’s revised proposal. Although they could still block it with these commitments in place, extending the deadline suggests they might approve with certain conditions attached.
Microsoft sees this extension of deadline as a positive development; it indicates that the Competition and Markets Authority is taking its time in considering Microsoft’s proposal and is not automatically opposed to acquisition. Although, due to potential delays with CMA approval processes, we still cannot say definitively if this acquisition will go through or not.
What does this development mean for the gaming industry?
This extension could have profound ramifications for the gaming industry. Should Microsoft’s acquisition be approved, it would give them a strong presence in gaming – they would own some of the most iconic franchises including Call of Duty, World of Warcraft and Candy Crush which could give them an unfair edge against rivals.
But if this acquisition were blocked, it would be devastating for Microsoft and could slow the consolidation of the gaming industry. Furthermore, gamers were hoping that there would be greater innovation and competition within gaming as a whole.
Only time will tell what will become of Microsoft’s acquisition of Activision Blizzard, but an extension of the deadline indicates that negotiations may still go forward.