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Microsoft’s £56bn acquisition of Call of Duty maker Activision is at risk as regulators raise competition concerns
Microsoft’s blockbuster acquisition of Call of Duty maker Activision Blizzard is once again being called into question as even more regulators scrutinize the £56bn commitment.
The European Commission will sue the technology giant in the coming weeks over concerns about the largest video game acquisition of all time, Reuters reports.
Regulators’ main concern is that Microsoft — which makes the Xbox gaming console — could hurt the video game market by restricting access to Activision games like Crash Bandicoot and Guitar Hero and giving unfavorable terms to its rivals.
Competition fears: Regulators are concerned that Microsoft could hurt the video game market by restricting access to Activision games like Call of Duty (pictured)
The UK’s competition watchdog is also looking into the acquisition, which was cleared by Microsoft last January, as it tries to keep up with video game majors Sony and Tencent.
Earlier this month, the Competition and Markets Authority (CMA) postponed its decision on whether to block the deal, pushing the deadline from February to the end of April. The CMA blamed the “complexity of the investigation” and the “large amount of evidence.”
The US antitrust authorities said they will go to court to block the deal.
The Federal Trade Commission’s Bureau of Competition said, “Microsoft has already shown that it can and will withhold content from its gaming rivals.”
A spokesperson for Microsoft said: “We continue to work with the European Commission to address any potential issues in the market. Our goal is to bring more games to more people, and this deal will further that goal.”