British watchdog starts investigation into acquisition of Activision Blizzard by Microsoft

The Competition and Markets Authority (CMA) has launched an investigation into Microsoft’s acquisition of Activision Blizzard. Microsoft reached an agreement with the gaming giant in January and wants to pay $ 68.7 billion for the acquisition.

The market authority wants to investigate, among other things whether the acquisition “will lead to a significant reduction of competition in one or more markets in the United Kingdom”. The investigation will last until September 1. Then the CMA must decide whether it agrees to the deal. If necessary, the CMA can also launch a second, more extensive investigation at that time, writes news agency Reuters. Companies and individuals have until July 20 to object to the takeover or to provide other responses, the market authority writes.

The CMA is not the first market watchdog to announce an investigation into the deal. The US Federal Trade Commission already indicated in February that it will review the acquisition.

It is Microsoft’s second billion-dollar acquisition in two years. In September 2020, Microsoft announced its intention to acquire Bethesda’s parent company for $7.5 billion. The takeover was approved and completed six months later. Tweakers wrote an article about the possible consequences of the deal.