UK regulator now says Microsoft Activision merger won’t significantly lessen competition in console gaming | VGC
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British regulator now says Microsoft Activision merger won’t significantly lessen competition in console gaming | VGC
Activision shares jump as British competition regulator drops key concern on Microsoft takeover
CNBC
The UK’s Competition and Markets Authority (CMA) has cleared Microsoft’s $9 billion acquisition of US game publisher Activision, the CMA said on Friday.
The CMA said it had “unanimously” cleared the deal after an in-depth phase 2 investigation, which Microsoft had requested in order to address the regulator’s concerns.
“The CMA has today cleared Microsoft’s proposed acquisition of Activision,” the CMA said in a statement.
“The CMA has found that the merger is not expected to increase prices or reduce quality for consumers, or to reduce competition in the UK for video game consoles and games.”
The CMA had provisionally cleared the deal in July, subject to Microsoft addressing the regulator’s concerns.
Microsoft announced the deal to buy Activision in early 2019, saying the move would bolster its gaming business and help it compete with Sony’s PlayStation.
The deal was cleared by US antitrust authorities in October 2019.
The CMA’s decision comes as the UK government prepares to introduce a new Digital Services Tax (DST) on the revenues of search engines, social media platforms and online marketplaces from April 2020.
The tax, which is expected to raise around £400 million a year, has been opposed by the US government.
Prime Minister Boris Johnson said on Thursday that the tax was “fair and reasonable” and that the UK would ” stick to our guns” on the issue.
