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3 major companies told CMA that Microsoft Activision deal harms competition
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The Microsoft Activision deal is still pending due to opposition from some official parties and approval from others. But we've never had a say in which companies would be the biggest beneficiaries or the biggest losers from this deal.
As part of its investigation into the Microsoft Activision deal, the UK Competition and Markets Authority (CMA) asked six offshore companies affected by the merger for their opinions on the potential impact of the acquisition on the overall process. Three of the six stated that the merger "would have a negative impact on competition." This would give Microsoft the ability to block competing gaming platforms, which is largely the PlayStation platform.
During its Phase II investigation into the merger, the Capital Markets Authority interviewed six potential competitors or rivals about how the deal would affect the gaming industry. While the identities of these third parties were not disclosed, half of them expressed concerns. Here is a newly released summary of the proceedings:
"Three companies have confirmed that the merger will negatively impact competition. This gives Microsoft the ability and incentive to prevent potential and existing competitors from purchasing its platforms. It also mandates subscriptions to its multi-game services and cloud gaming spaces."
However, two of the six parties expressed no concerns about the deal, and one stated that it was "too early to tell" the impact of the merger. However, one party stated that Microsoft's recent behavior, including the acquisition of Bethesda, "illustrates a strategy designed to prevent gaming platforms from competing, which could harm consumers."
Finally, another third party believes that Microsoft already has a foothold in the multi-game subscription space (with Xbox Game Pass) and that the merger will only “solidify that situation.”
When a company acquires another, it takes its fan base with it and deprives them of platform choice. This is exactly what Sony fears, especially since the acquired company is Activision, which is very large.
