Microsoft Accuses UK Regulator of Incorporating Sony’s Complaints in Activision Investigation

Microsoft’s $68.7 billion acquisition of Activision Blizzard is facing scrutiny from regulators worldwide, including the UK’s Competition and Markets Authority (CMA). The CMA initiated an investigation in July and recently recommended a Phase 2 inquiry, which could potentially block the merger or require divestitures. Microsoft has responded strongly to the CMA’s concerns, accusing the regulator of relying on biased information from Sony.

In its rebuttal shared with Ars Technica, Microsoft disputed the CMA’s worry that Activision’s games, particularly the Call of Duty franchise, could give Xbox an unfair advantage. The tech giant argued that the CMA is exaggerating the significance of Activision Blizzard’s games in the competitive landscape and emphasized plans to make Call of Duty more accessible through its Game Pass subscription service.

Sony, however, expressed discontent with the prospect of heightened competition, highlighting its strategy of withholding new game releases from PlayStation Plus. Microsoft countered by asserting that adding Call of Duty to Game Pass would not necessarily drive console sales and reiterated that the games would still be available for purchase on PlayStation.

Microsoft criticized the CMA for adopting Sony’s complaints without sufficient scrutiny, asserting that the notion of losing access to one title affecting market dynamics is unfounded. The company expressed readiness to engage with the CMA in Phase 2 and is committed to demonstrating the benefits of the acquisition.

Meanwhile, Sony reiterated its opposition to the deal, warning of negative implications for competition, the gaming industry, and consumers. The acquisition, according to Sony, would consolidate Microsoft’s position in gaming and have detrimental effects on independent developers and Sony itself.