After much speculation, the CMA seems to have decided to sue Microsoft to try to stop the acquisition of Activision Blizzard. This, of course, comes after several months of internal Commission analysis; Besides being an expected ending for many, it’s consistent with all the media interactions that have happened since. With that, he joins the FTC and the EU as regulators who are unclear on whether to agree to the deal.
According to a report by The New York Times
Microsoft moves its cards, there would be a lawsuit against 3 different regulators
It’s pretty important that regulators make a final verdict on this purchase, with every month they delay their decision, Microsoft loses a market opportunity with every game they release since Activision Blizzard King. The market continues its course and one of Xbox’s strategies for the industry was to have an ecosystem twice as large thanks to Activision’s IPs, but with these ongoing lawsuits, everything can be extended for another year.
Microsoft’s strategy for now has been to demonstrate how the industry works and, more importantly, how the PlayStation business works with video games. Recently, we learned how Sony was ordered to report to provide information on its launch models, including exclusive offers for over 10 years. This as a measure to demonstrate to the FTC that competition would not be unfair with the recent agreement between Activision and Xbox.
As always, all that remains is to wait. Until recently, what needed to be resolved in June or February 2023 could take a long time. And while that won’t delay Xbox’s 2023 strategy, we may not have big news like a “bombshell” a year from now.