London Daily

Focus on the big picture.
Saturday, Jul 12, 2025

Microsoft’s $69bn takeover of Activision a step closer to being blocked by UK watchdog

Microsoft’s $69bn takeover of Activision a step closer to being blocked by UK watchdog

The Call of Duty maker responds to the CMA's competition concerns by claiming the regulator doesn't understand the gaming market while Microsoft says "solutions" will be found.

The UK's competition watchdog has moved a step closer to potentially blocking Microsoft's planned $69bn (£56bn) takeover of Call of Duty gaming firm Activision.

In a provisional ruling, the Competition and Markets Authority (CMA) said the proposed tie-up could lead to higher prices, fewer choices and less innovation for UK gamers.

Activision responded by claiming the regulator did not understand the market.

The massive deal, first announced over a year ago, was designed to bolster Xbox maker Microsoft's position in the lucrative gaming sector.

Signing up subscribers has become a priority for big tech firms as traditional growth areas such as ad sales becomes less reliable.

But Microsoft's strategy has been met with a series of complaints from competitors, including Sony, and regulators globally.

The US Federal Trade Commission (FTC) has already moved to block the deal on similar competition grounds, with a hearing due in August.

The CMA began its in-depth probe in September last year after deciding further work on its implications was warranted.

The regulator said on Wednesday that it had given both parties the opportunity to resolve its concerns through possible remedies before a final decision, that could result in the deal being blocked, was to be reached.

Call of Duty's popularity has proved a battleground in the takeover saga.

That would be announced by 26 April, the statement said.

It explained: The CMA provisionally found that weakening competition by restricting the access that other platforms have to Activision's games could substantially reduce the competition between Xbox and (Sony) PlayStation in the UK, in turn harming UK gamers.

Xbox and PlayStation compete closely with each other at present and access to the most important content, like CoD, is an important part of that competition.

"Reducing this competition between Microsoft and Sony could result in all gamers seeing higher prices, reduced range, lower quality, and worse service in gaming consoles over time."

Martin Coleman, who chairs the CMA's investigation panel, added: "It's been estimated that there are around 45 million gamers in the UK, and people in the UK spend more on gaming than any other form of entertainment including music, movies, TV, and books.

"Strong competition between Xbox and PlayStation has defined the console gaming market over the last 20 years.

"Exciting new developments in cloud gaming are giving gamers even more choice.

"Our job is to make sure that UK gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation.

"We have provisionally found that this may be the case here."

Microsoft and Activision were given until 22 February to submit their responses - including to the CMA's proposed remedies.

It has consistently batted off the criticism of regulators but entered a 10-year commitment to offer Call of Duty, the popular first-person shooter series, to Nintendo and Sony platforms.

Activision responded: "We hope between now and April we will be able to help the CMA better understand our industry to ensure they can achieve their stated mandate to promote an environment where people can be confident they are getting great choices and fair deals, where competitive, fair-dealing business can innovate and thrive, and where the whole UK economy can grow productively and sustainably."

Rima Alaily, Microsoft's corporate vice president, said: "We are committed to offering effective and easily enforceable solutions that address the CMA's concerns.

"Our commitment to grant long-term 100% equal access to Call of Duty to Sony, Nintendo, Steam and others preserves the deal's benefits to gamers and developers and increases competition in the market.

"75% of respondents to the CMA's public consultation agree that this deal is good for competition in UK gaming."

Newsletter

Related Articles

0:00
0:00
Close
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
×