Microsoft-Activision Blizzard Deal Faces Serious UK Antitrust Probe; Here's What's Triggering the Investigation

Here's why the acquisition allegedly threatens the market competition.

The billion-dollar Microsoft-Activision Blizzard acquisition is now facing a new serious antitrust probe from the U.K. government.

Microsoft-Activision Blizzard Deal Faces Serious UK Antitrust Probe; Here's What's Triggering the Investigation
Signage is seen at The Ultimate Fan Experience, Call Of Duty XP 2016, presented by Activision, at The Forum on September 3, 2016 in Inglewood, California. Photo by Rich Polk/Getty Images for Activision

The United Kingdom's Competition and Markets Authority (CMA) shared by the massive deal can affect the market.

The competition regulator said, on Sept. 1, that the Microsoft-Activision Blizzard acquisition poses competition risks in markets, especially in the cloud gaming and console sectors.

Because of this, a second-stage probe has arrived. Now, here's what's triggering the serious antitrust investigation.

Microsoft-Activision Blizzard Deal Faces Serious UK Antitrust Probe

According to CNN Business' latest report, the deal between Microsoft and Activision Blizzard, which cost $68.7 billion, could allow the software to gain ownership of popular video game franchises.

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These include "Candy Crush," "World of Warcraft," and "Call of Duty."

Because of this, U.K. regulators claimed that the billion-dollar acquisition would allow Microsoft to restrict the mentioned gaming content from other platforms.

For example, the software giant can remove "Call of Duty" and other titles of Activision Blizzard from Sony's PlayStation platform.

As of writing, Microsoft hasn't commented on the latest antitrust probe of CMA against its Activision Blizzard acquisition.

The software giant is still in the process of complete acquiring the giant game publisher. But, if the antitrust probe proves that the deal can affect the market competition, then Microsoft will have a hard time acquiring Blizzard.

Other Problems Posed by the Acquisition

CNBC reported that the stock price of Activision Blizzard has drastically decreased ever since Microsoft announced its plan to acquire the company.

In January, the stock price of the video game firm was around $85. But, this value decreased by around $78 in May.

Although this is the case, new investors are still putting their money into Activision Blizzard's shares. These include Berkshire Hathaway.

If you want to see further details about the effect of the Microsoft-Activision Blizzard deal on the gaming developer's stocks, you can visit this link.

Recently, the new Microsoft hardware clothing collection, in partnership with Gavin Mathieu, was unveiled.

Meanwhile, many of Microsoft's job listings are expected to be eliminated.

For more news updates about Microsoft and its ongoing acquisition deal with Activision Blizzard, keep your tabs on here at TechTimes.

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Written by Griffin Davis

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