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Microsoft Has Claimed Sony Has Influenced UK Watchdogs To Launch A Probe In Its Acquisition

OnZine Articles

ByOnZine Articles

Oct 11, 2022

Microsoft has recently made an allegation on the competition regulator about the recent probe launched against their company. Microsoft has claimed that the watchdog has relied upon the information and objections fed by Sony while carrying out the probe.

Microsoft is Pointing Fingers

Microsoft is not happy with the way the competition regulator of the United Kingdom has dealt with the situation. The manufacturer of Xbox has alleged the regulator it has been fed by its rival Sony to run a probe against its recent activities.

Microsoft raised questions in response to the latest deal it has launched with Activision Blizzard. Microsoft has been after the acquisition of Activision Blizzard for a deal worth $69 billion.

Right after the reports that Microsoft had approached Activision Blizzard with an acquisition offer, the competition regulator in the UK launched a probe against its activities.

As per Microsoft, the regulator has launched a probe against “Call of Duty”, in response to misplaced concerns.

CMA’s Reason for Investigation

It was in the month of September when the Competition and Markets Authority (CMA) released a statement surrounding the activities of Microsoft.

It reportedly shared its concerns over the acquisition of Activision Blizzard by Microsoft claiming that it would strongly harm the competition.

As a result of the above concern, the CMA announced that it was necessary that an in-depth investigation be launched.

Concern Shared by the CMA

The CMA made another statement where it claimed that Microsoft was in the process of acquiring multiple games that would eventually end up harming the rivals.

It shared its concerns that even the cloud gaming and multi-game subscription services would end up facing the same impact because of Microsoft’s attempt.

As per the CMA, it would prove to be a game-changing merger if Microsoft acquires Activision Blizzard. It revealed that merging with Activision Blizzard would give Microsoft access to some of the largest gaming franchises.

These major gaming franchises include World Warcraft, Call of Duty, and Candy Crush. The CMA added that having full control over these games would steal the opportunity from its rivals such as Sony to compete at all.

Response by Microsoft

Following the statements issued by the CMA, Microsoft officials decided that it was necessary to respond to such allegations.

Microsoft claimed that without critical reviewing, the CMA decided to adopt the complaints filed by Sony against Microsoft’s Activision Blizzard acquisition.

The Xbox creator stated that Sony has been responsible for the creation of Sony PlayStation, the largest console platform in the entire world. It has dominated the console platform industry for over 20 years.

Therefore, its dominance would neither be harmed nor reduced if Microsoft acquires a few gaming titles. Sony should not claim that its dominance in the gaming market would be challenged if Microsoft acquires a title or two.

Microsoft did mention that it had committed that it would not deprive Sony PlayStation of titles such as ‘Call of Duty’. However, Sony has shared its concerns with the CMA, highly exaggerating the importance of the particular title.

Still, the CMA has announced that it has launched a thorough investigation and a probe against the acquisition deal to analyze its impact on the rival gaming companies.

OnZine Articles

OnZine Articles

OnZine Articles main author - Max Haydon

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