UK challenges $69B Microsoft/Activision deal, citing potential harm to gamers

UK watchdog wants deeper probe into Microsoft's $69-bln Activision deal

CMA saying - the deal "could substantially lessen competition" in the gaming industry.

Microsoft announced its plan to buy Activision Blizzard for $68.7 billion in January.

If suitable proposals are not submitted, the deal will be referred for a Phase 2 investigation,

which would "allow an independent panel of experts to probe in more depth the risks identified at Phase 1," the CMA said.

The CMA is concerned that Microsoft could leverage Activision Blizzard's games together ...

with Microsoft's strength across console, cloud, and PC operating systems to damage competition in the nascent market for cloud gaming services,".

A Phase 2 investigation is typically limited to 24 weeks but can be extended by up to eight weeks.

In another high-profile case, the CMA launched a Phase 2 investigation of a proposed Nvidia/Arm deal.

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