The Competition and Markets Authority (CMA), the UK’s competitors regulator, believes Microsoft’s deliberate $68.7 billion acquisition of Activision Blizzard might hurt its rivals.

The CMA says the proposed deal raises plenty of competitors considerations, and suggests it might warrant additional investigation primarily based on the proof it has already acquired.

“Activision Blizzard has a few of the world’s best-selling and most recognisable gaming franchises, comparable to Call of Duty and World of Warcraft. The CMA is anxious that if Microsoft buys Activision Blizzard it might hurt rivals, together with current and future entrants into gaming, by refusing them entry to Activision Blizzard video games or offering entry on a lot worse phrases,” wrote the CMA.

The regulator mentioned it has additionally acquired proof regarding the potential influence of mixing Activision Blizzard with Microsoft’s broader ecosystem, which incorporates its {hardware} enterprise, cloud platforms, and PC working system — all of which it believes might be “vital” to its success within the cloud gaming house.

“The CMA is anxious that Microsoft might leverage Activision Blizzard’s video games along with Microsoft’s energy throughout console, cloud, and PC working methods to break competitors within the nascent marketplace for cloud gaming providers,” it added.

A dangerous proposition?

The CMA believes the considerations outlined above warrant an in-depth “Phase 2” investigation into the deal. Microsoft and Activision Blizzard now have 5 days to submit proposals addressing these considerations earlier than the deal is referred for a Phase 2 investigation, which permits an impartial panel of specialists to “probe in additional depth the dangers recognized at Phase 1.”

“Following our Phase 1 investigation, we’re involved that Microsoft might use its management over common video games like Call of Duty and World of Warcraft post-merger to hurt rivals, together with current and future rivals in multi-game subscription providers and cloud gaming,” added Sorcha O’Carroll, senior director of mergers on the CMA. 

“If our present considerations usually are not addressed, we plan to discover this deal in an in-depth Phase 2 investigation to succeed in a call that works within the pursuits of UK avid gamers and companies.”

Microsoft, for its half, says it is able to work with the CMA to handle its considerations and make sure the deal strikes ahead.

“We’re able to work with the CMA on subsequent steps and handle any of its considerations. Sony, because the trade chief, says it’s frightened about Call of Duty, however we’ve mentioned we’re dedicated to creating the identical recreation obtainable on the identical day on each Xbox and PlayStation,” mentioned Brad Smith, Microsoft president and vice chair, in an announcement. “We need individuals to have extra entry to video games, not much less.”