Xbox’s Activision Blizzard acquisition has taken a major step forward as the UK’s Competitions and Markets Authority (CMA) has revealed it is now less concerned over the deal going through.
The CMA released a statement saying that one of its key provisional concerns — that the deal would harm competition if Microsoft made Call of Duty an Xbox exclusive — has now been addressed and is no longer an issue.
Following significant feedback from Microsoft, Sony, and all other involved parties, the CMA has said that it wouldn’t make sense to make Call of Duty exclusive as this would only lose Xbox money. It’s unclear if Microsoft’s drive to sign deals putting Call of Duty on Nintendo Switch and various cloud gaming platforms affected this decision.
This doesn’t mean the deal will definitely go through, as the CMA said it still has major concerns over its impact on the cloud gaming market, but Microsoft will likely be happy with the announcement, and Activision Blizzard is too.
“The CMA’s updated provisional findings show an improved understanding of the console gaming market and demonstrate a commitment to supporting players and competition,” Activision Blizzard told IGN.
“Sony’s campaign to protect its dominance by blocking our merger can’t overcome the facts, and Microsoft has already presented effective and enforceable remedies to address each of the CMA’s remaining concerns. We know this deal will benefit competition, innovation, and consumers in the UK.”
Martin Coleman, the CMA’s chair of the independent panel of experts conducting the Activision Blizzard deal investigation, said: “Having considered the additional evidence provided, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action.” The final verdict should still arrive by the end of April, he added.
The CMA had previously taken a largely negative stance for Microsoft, having raised several concerns over the deal’s impact in its provisional findings published February. Microsoft and Activision Blizzard pushed back, however, reiterating their commitment to bring Call of Duty to all platforms. This was seemingly heard loud and clear (and believed) by the CMA.
The provisional findings aren’t a preview of the final verdict though, but more of a place for the CMA to raise all possible concerns, big and small. It then opens the floor up to Microsoft, Sony, and other involved parties to submit evidence, offer solutions, and so on.
The CMA’s investigation into Microsoft’s Activision Blizzard deal was recently extended due to its complexity, with a final result now expected by April 26 at the latest.
Editor’s Note: This article has been updated to include Activision Blizzard’s comment to IGN.
Ryan Dinsdale is an IGN freelancer and acting UK news editor. He’ll talk about The Witcher all day.
