Failure for Microsoft’s £59 billion plan to buy video game company Activision Blizzard | Business newsletter

The UK watchdog said Microsoft’s acquisition of Activision Blizzard could reduce competition and demanded further investigation.

The $68.7 billion (£59.4 billion) takeover was announced in January and will make the Xbox maker Microsoft a stronger rival to Sony and Nintendo.

But the Competition and Markets Authority said the deal could limit competitors’ access to Activision Blizzard’s games and limit competition in the emerging cloud gaming market.

Both companies have been given until September 8 to make proposals to address these concerns.

If this does not happen, the authorities will intensify the investigation, which means more scrutiny.

Activision Blizzard has some of the best-selling and most recognizable game franchises in the world, such as Call of Duty and World of Warcraft.

The all-cash takeover would be the biggest in the history of technology.

Both Microsoft and Activision have said they will continue to work with the CMA.

“Sony, as an industry leader, says it’s worried about Call Of Duty, but we’ve said we’re committed to delivering,” said Microsoft President and Vice President Brad Smith. same game on both Xbox and PlayStation. “

Activision Blizzard CEO Bobby Kotick said he still expects the deal to close in Microsoft’s fiscal year ending June 30, 2023.