The UK authorities’s Competition and Markets Authority (CMA) is worried that Microsoft’s acquisition of Activision Blizzard might “substantially lessen competition” in consoles, multi-game subscription companies, and cloud gaming companies.

According to a public discover from the CMA, it’s involved that ought to Microsoft buy Activision Blizzard, it could hurt rivals by refusing entry to the corporate’s video games, similar to Overwatch or Call of Duty, or offering entry on dangerous phrases.

The CMA stated it obtained proof concerning the “potential impact” of mixing Activision Blizzard with Microsoft’s broader ecosystem. It feels the latter might “leverage Activision Blizzard’s games” with its power throughout console, cloud, and PC working techniques to “damage competition in the nascent market” for cloud gaming companies.

The physique has already completed Phase 1 of its investigation into the acquisition and is contemplating launching an in-depth Phase 2 investigation. Phase 1 recognized a practical prospect of “significant lessening” of competitors in gaming consoles, multi-game subscriptions, and cloud gaming companies. Phase 2 would permit an impartial panel of specialists to probe the dangers in a extra depth investigation.

To that finish, Microsoft and Activision Blizzard have been given 5 working days to submit proposals to handle the CMA’s issues. If appropriate proposals will not be submitted, a Phase 2 investigation will start.

In response, Activision CEO Bobby Kotick posted an open letter concerning the potential of a Phase 2 investigation by the UK’s CMA.

Kotick’s public letter discusses how Activision Blizzard has been conscious from the beginning that convincing regulating our bodies the acquisition ought to undergo can be a “long process.” He additionally states the businesses are greater than keen to cooperate with the CMA and different regulators.

“As we said from the outset, this is a long process. With the number of government approvals required, we still believe the deal is most likely to close in Microsoft’s fiscal year ending June of next year,” stated Kotick. “We are lucky to have already obtained approvals from a few nations, and the method with the entire regulators is mostly transferring alongside as we anticipated.

“This week we heard from the United Kingdom, where we have more employees than anywhere except North America. We have entered the second phase of our review there, and we will continue to fully cooperate with the regulators there, and everywhere approvals are required.”

Earlier this week, Microsoft Gaming CEO Phil Spencer reiterated the corporate’s intention to not preserve Call of Duty video games off different platforms. He additionally reiterated the agency’s dedication to creating the identical sport model out there to PlayStation customers upon launch.

“We will proceed to allow folks to play with one another throughout platforms and gadgets,” stated Spencer. “We know players benefit from this approach because we’ve done it with Minecraft, which continues to be available on multiple platforms and has expanded to even more since Mojang joined Microsoft in 2014.”