By Samuel L. Garbett

Microsoft’s acquisition of Activision Blizzard hasn’t been the easiest of business deals.
Regulators aren’t happy, but could they stop Microsoft?
It seems like Microsoft’s acquisition of Activision Blizzard is stuck in limbo, as regulators aren’t
happy with its potential implications and consequences.
But what are regulators saying about Microsoft’s acquisition plans, and could the deal fall
through? Let’s find out.
Microsoft’s Bid to Buy Activision Blizzard
Back in January 2022, Microsoft made a US$68.7 billion bid to acquire gaming giant Activision
Blizzard. This would mean taking ownership of some of the brand’s largest properties, including
World of Warcraft and Call of Duty, along with a slew of other games.
There is a lot of speculation about Microsoft’s plan for Activision Blizzard, including changes to
season passes and turning multi-platform titles into exclusives. But there’s a chance it may

never happen. Rife with controversy since day one, Microsoft has, so far, failed to convince
regulators across the world to push the merger through.
What Are Regulators Saying About Microsoft’s Acquisition of Activision Blizzard?
Industry and trade regulators from across the world have come out against Microsoft’s plans to
acquire Activision Blizzard, including the UK, EU, and USA.
The UK CMA Response to Microsoft’s Bid to Buy Activision Blizzard
In February 2023, the UK’s Competitions and Markets Authority released a provisional
statement condemning Microsoft’s plans to buy Activision Blizzard on its gov.uk website. The
regulator believes that the deal could harm the gaming industry, making it harder for other
gaming companies to compete with Microsoft in the future.
As it stands, the CMA’s report is provisional, and this means that there’s time for the findings to
change. A final report outlining the CMA’s recommendations for the UK Government is due for
publication on April 26, 2023.
The EU’s Anti-Trust Warning to Microsoft
Unlike the UK, the EU has seemingly already committed to its response to Microsoft’s bid to
buy Activision Blizzard.
Reportedly, this comes in the form of a formal anti-trust warning that the deal could threaten
fair competition, presumably for similar reasons to the UK CMA report. Microsoft has
responded to the warning by promising to address the European Commission’s concerns.
The US FTC Sues Microsoft to Block the Activision Deal
The US Federal Trade Commission has taken possibly the strongest action against Microsoft to
stop its Activision Blizzard buyout.
Issuing an official complaint that will have to go through court, the FTC shares many of the
concerns of the EU and the UK CMA. The official statement on the FTC website uses Microsoft’s
2021 acquisition of ZeniMax to back this up.
Could Regulators Kill the Microsoft/Activision Blizzard Deal?
Each of the regulatory bodies’ complaints revolves around concerns about Microsoft’s
acquisition of Activision Blizzard would mean for gamers. There are two key justifications for
these concerns shared between each complaint.
Cloud Gaming Services: Microsoft already holds a 60-70 per cent market share of cloud gaming
services. Activision Blizzard is one of its key competitors in the cloud gaming space, and this
means Microsoft would scoop up an even larger share of the market if the deal goes through.

Game Console Sales: Activision’s Call of Duty is one of the best-selling game franchises of all
time, with Call of Duty Modern Warfare 2 selling more copies in the US in 2022 than any other
game (Statista). As of February 2023, the franchise is available on Xbox, PlayStation, and Switch,
but this could change if Microsoft owned the title.
Both of these issues come down to competition. If Microsoft is able to control the majority of
the cloud gaming market, other companies will find it much harder to gain subscribers and
grow their brands.
Likewise, if Microsoft owned a record-breaking game franchise like Call of Duty, it’s conceivable
that it would become exclusive to the Xbox and Microsoft’s Xbox Game Pass service. This could
have a dramatic impact on console sales from companies like Sony and Nintendo.
While the reasoning for each regulator’s concerns is sound, it’s difficult to speculate on whether
or not the deal will go through. But why can’t we say for sure?
Microsoft’s Promises for Call of Duty
Microsoft has already struck a deal with Sony to continue publishing Call of Duty for the
PlayStation for 10 years and has made similar agreements with Nintendo and Valve. This may or
may not be enough to satisfy industry regulators.
Microsoft’s Rebuke to FTC Action
Microsoft has released its own statement to rebuke FTC claims that its 2021 acquisition of
ZeniMax is evidence supporting the regulator’s concerns. While existing ZeniMax games have
remained on their original platforms and contractual agreements for releases on the PS5 have
been upheld, newer releases, like Starfield, are Xbox/PC exclusives.
This shows that Microsoft is inclined to create exclusive titles for its own platforms. Whether or
not this will happen with Call of Duty once Microsoft’s 10-year deal with Sony runs out is
unknown, but this isn’t the only major franchise owned by Activision Blizzard. This makes it
hard to say if Activision games will remain multi-platform under Microsoft.
Incomplete Regulatory Action
The UK’s CMA report is only provisional and isn’t released in full. The EU’s anti-trust warning
isn’t public, and Microsoft is working to address the complaint. And, of course, the FTC case still
needs to go through court. With no complete regulatory action at this stage, it’s difficult to say
exactly what will happen to Microsoft’s dream deal.
The Uncertain Future of Microsoft and Activision Blizzard
The future is not set in stone for Microsoft’s acquisition of Activision Blizzard. If regulators have
their way, the deal will die, and the two companies will remain independent of each other.
Microsoft, though, appears to be working hard to address the complaints and concerns of the
regulatory bodies it faces.

Only time will tell whether or not Microsoft will have its way. But, whatever the outcome, it can
only be hoped that it will benefit the gaming community.
 Samuel is a UK-based technology writer with a passion for all things DIY.
https://www.makeuseof.com