United Kingdom Competition and Markets Authority Launches Fresh Inquiry Over the Acquisition of Activision by Microsoft
The Popular American-based technology giant gets queried by the UK Antitrust watchdog over the acquisition of Activision.
In January 2022, Microsoft purchased Activision, a popular game publisher, for $69 billion. The UK antitrust regulator has begun a probe into the acquisition.
The UK Competition and Markets Authority (CMA) is investigating if the purchase could cause a substantial lessening of competition within markets in the United Kingdom for goods or services.
More information on the Probe
Microsoft has notably acquired several gaming companies, making it the third-largest gaming company in revenue generation behind Tencent and Sony. The probe was made public by Microsoft President Brad Smith when he announced the request received from the agency to provide details about the acquisition of Activision in May 2022.
Meanwhile, the US Federal Trade Commission (FTC) is also looking into the merger to determine its potential impact on the labour market. FTC Chair Lira Khan has disclosed that they are committed to finding out the impact of the deal on Activision Blizzard workers. To this effect, Microsoft has signed an agreement to labour neutrality with the communications workers of the American Union.
Microsoft and Activision Vision of the Metaverse
Microsoft CEO Satya Nadella stated,
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms.”
The CEO of Activision, Bobby Kotick, noted that the Microsoft deal was prompted by their dire desire to be a part of the metaverse.
Statistical projections show that the 3D virtual world could reach $5 trillion in valuation by 2030, according to McKinsey, while earlier Citi estimates range from $8-$13 trillion.