Microsoft’s £50billion mega-deal with Call of Duty video game maker Activision Blizzard hit a snag as the competition regulator raised concerns about the tie-up.
The Competition and Markets Authority (CMA) said the merger could ‘substantially lessen competition’ in the gaming market if Microsoft refused access to some of Activision’s major titles to its rivals.
Microsoft makes the Xbox range of video game consoles and for years has been locked in a battle for supremacy with Japanese giant Sony, the creator of the PlayStation.
Battle for supremacy: Call of Duty is one of video game maker Activision’s most popular titles
The CMA said merging Activision with Microsoft could allow the tech giant to use games to ‘damage’ competition in the growing market for cloud gaming, which allows consumers to stream games to their devices in a manner similar to what Netflix offers for movies and TV shows.
As a result, the watchdog said Microsoft and Activision had five working days to submit proposals to address its concerns or the merger would be referred for an in-depth Phase 2 probe.
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