Microsoft’s Activision Blizzard Deal: Stuck in Regulatory Purgatory?

Microsoft’s ambitious $69 billion acquisition of Activision Blizzard, the gaming giant behind Call of Duty, World of Warcraft, and Candy Crush, is facing significant regulatory headwinds. Regulators in the US (FTC), UK (CMA), and EU are scrutinizing the deal over concerns about potential antitrust violations.

The main worry? That Microsoft could stifle competition by making Activision Blizzard’s popular games exclusive to Xbox or cloud gaming services, disadvantaging rivals like Sony’s PlayStation. The CMA in the UK has been particularly vocal, raising concerns about the deal potentially harming innovation and consumer choice in the cloud gaming market. The EU regulators also have opened an in-depth investigation. The FTC in the USA has also moved to block the deal.

Microsoft argues that the acquisition will benefit gamers by bringing more games to more people through Xbox Game Pass and cloud streaming. They’ve offered concessions, including pledges to keep Call of Duty available on PlayStation. However, regulators remain skeptical. The deal’s fate hangs in the balance, with potential outcomes ranging from outright rejection to approval with strict conditions. This could reshape the future of the gaming industry.