Open Markets Weighs in on Latest in Microsoft’s Acquisition of Activision Blizzard
FOR IMMEDIATE RELEASE, February 8, 2023
CONTACT: Max von Thun, vonthun@openmarketsinstitute.org
BRUSSELS -Open Markets Institute Europe Director Max von Thun released the following statement with regard to the United Kingdom Competition and Markets Authority’s (CMA) issuing of provisional findings from its investigation into Microsoft’s acquisition of Activision Blizzard:
“Open Markets strongly supports the UK CMA’s provisional findings from its in-depth probe of Microsoft’s acquisition of Activision Blizzard. We share the CMA’s assessment of the threat to fair competition from this deal: Microsoft could use Activision's "must-have" games as a competitive weapon against rivals by withholding titles such as Call of Duty entirely or offering them on unfair and discriminatory terms. The public harms from this merger include less choice for console gamers to monopolisation of the nascent market for cloud gaming. In particular, we applaud the CMA’s willingness to take a long-term view on the evolution of nascent digital markets, instead of merely focusing on the here and now.
The CMA’s inclination to focus on structural rather than behavioural remedies is the right one. As the CMA itself acknowledges, behavioural remedies are notoriously difficult to monitor and enforce, and unlikely to be effective. The CMA should therefore reject any attempt by Microsoft to address its concerns by offering rivals temporary access to Activision’s game catalogue. It should also avoid entertaining any complex solutions involving partial divestiture, which could undermine Activision’s future as a successful independent business. We therefore urge the CMA to block the acquisition outright.”
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