A UK regulator has called on the public for their opinions regarding Microsoft's acquisition of Activision Blizzard. The merger has been in the spotlight recently as governments across the world have begun to vocalize judgments on how Microsoft's deal may impact competition in the industry.
Microsoft announced its $68.7 billion acquisition on January 18 earlier this year, which would see Activision, Blizzard Entertainment, and King brought into the Xbox Game Studios fold. Since then regulatory bodies have been investigating the supposed merger, with judgments ostensibly still pending. Brazil recently approved the deal, criticizing Sony's foray into the discussion, which saw the competitor argue that the potential for Microsoft to turn industry defining franchises exclusive, such as Call of Duty, was anti-consumer. Brazil disagreed, citing that both Sony and Microsoft have used exclusivity profusely in order to attract customers. However, the UK's Competition and Markets Authority (CMA) has found Sony's arguments more convincing, expressing concerns in an Issues Statement that the regulatory body released last week.
Included in that Issues Statement was a detailed account of not only the processes being undertaken but every concern the CMA had regarding the acquisition. Listed findings include that "the Merged Entity would have significant upstream market power in publishing of games for consoles" and that "there are few, if any, alternative franchises with CoD's level of brand awareness and popularity among gamers." The CMA recently published guidance on its website as a follow-up, which invites "anyone, including members of the public, to share their views with us." Once the regulatory body has finished gathering and analyzing evidence, it is set to have hearings with the two relevant parties, subsequently offering provisional findings that the public will once again get to have their say on.
The video game industry broadly has expressed cautious optimism towards Microsoft's buyout, with sentiment likely biased in favor of the merger due to recent reputational damage that Activision Blizzard has suffered. On July 20, 2021, California's Department of Fair Employment and Housing filed a lawsuit against Activision Blizzard, following a two-year investigation that alleged the existence of a "frat boy" workplace culture, which saw women abused and harassed at the company for years. An already faltering attitude towards Activision Blizzard plummeted to new depths, and the following months witnessed walkouts, further stories of abuse, and attempts at unionization in a poorly organized industry.
Many attributed Microsoft's buyout to have been the result of this lawsuit and the allegations against Activision Blizzard, with the Xbox owner using this as an opportunity to acquire the struggling Overwatch, Diablo, and World of Warcraft publisher for a lower price. Gamers also believed that Microsoft's oversight could offer Activision Blizzard employees an improved work environment, a sentiment supported by those engaging in unionization efforts at the company. In more recent developments, Blizzard's Diablo QA staff have won the right to unionize, with ballots expected to be sent out within a week in a major win for workers' rights.
Source: GamesIndustry.biz