UK CMA Report Declares Microsoft-Activision Blizzard Deal Would 'Substantially Reduce Competition' |

System · February 2023

UK CMA Report Declares Microsoft-Activision Blizzard Deal Would 'Substantially Reduce Competition' | MMORPG.com

The UK Competitions and Markets Authority report on Microsoft's proposed acquisition of Activision-Blizzard finds the deal would "substantially reduce competition" and recommends prohibiting the deal or substantial divestiture to save it.

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urriel1970 · February 2023

sony is behind this trying to prevent microsoft from getting blizzard

Vrika · February 2023

urriel1970 said:

sony is behind this trying to prevent microsoft from getting blizzard

We also have Microsoft lobbying for the merger. At the end of the day Sony isn't powerful enough that they could massively outlobby Microsoft and get officials make idiotic decisions. All Sony can do is make the official decision more fair by ensuring that Microsoft's lobbying isn't the only lobby campaign with money and expertise.

Asturios · February 2023

urriel1970 said:

sony is behind this trying to prevent microsoft from getting blizzard

is it still only an aluminiumfoil hat or is it a full suit already ?

corrosivechains · February 2023

So, if these governing bodies tank this merger, are they also going to force Sony and Nintendo to give up their exclusive titles and distribute them to competitor platforms, cause I wouldn't mind getting the Legend of Zelda games on PC if we're being honest. It's "anti-competitive" that I can't purchase those titles unless I own a Nintendo console.

Vrika · February 2023

corrosivechains said:

So, if these governing bodies tank this merger, are they also going to force Sony and Nintendo to give up their exclusive titles and distribute them to competitor platforms, cause I wouldn't mind getting the Legend of Zelda games on PC if we're being honest. It's "anti-competitive" that I can't purchase those titles unless I own a Nintendo console.

No. Every company is allowed to have exclusives, Microsoft included. The officials haven't even claimed that Microsoft or any of its competitors would be engaging in any unfair or illegal practices.

This acquisition is a question of size, pure and simple: Whether the combination of Xbox, Windows, Gamepass and its related cloud services, Microsoft's online store(s), Microsoft's current game production, and Activision Blizzard would be so large that they'd have too much power over certain markets through their legal and allowed business practices.

nyxium · February 2023

The Borg in Star Trek are harmful to a planet when they show up to assimilate the population, same thing with Microsoft showing up to eat the gaming competition by absorbing Activision Blizzard and Call of Duty.

"Resistance is futile!"

Slapshot1188 · February 2023

My understanding is that folks long on Microsoft saw this as a win and a sign that the end result will be a few concessions before the deal goes through.

Vrika · February 2023

Slapshot1188 said:

My understanding is that folks long on Microsoft saw this as a win and a sign that the end result will be a few concessions before the deal goes through.

I think that's just Microsoft's PR game. They got a negative report, and are now trying to spin it as positively as possible.

Some of the concessions UK authorities speculated on that report include Microsoft selling Call of Duty, Microsoft selling Activision, and Microsoft selling Activision and Blizzard. There's no telling whether UK regulators are willing to allow the deal on any concessions that Microsoft would be willing to make.

Nanfoodle · February 2023

Vrika said:

Slapshot1188 said:

My understanding is that folks long on Microsoft saw this as a win and a sign that the end result will be a few concessions before the deal goes through.

I think that's just Microsoft's PR game. They got a negative report, and are now trying to spin it as positively as possible.

Some of the concessions UK authorities speculated on that report include Microsoft selling Call of Duty, Microsoft selling Activision, and Microsoft selling Activision and Blizzard. There's no telling whether UK regulators are willing to allow the deal on any concessions that Microsoft would be willing to make.

Experts are saying that FTC and other regulatory bodies are asking for concessions because if they tried to block this, it would go threw in the courts. If or what concessions would be needed, would then be done at the court level, not the regulatory bodies.

Asking for concessions first off will give these regulatory bodies more options they would want. Fact is, Nintendo and Sony and 10Cent out shine MS when it comes to the number of high end content, that beloved AAA games.

Everything MS has done with gaming since they started Gamepass in 2017, has been consumer friendly. Sony does not want to follow suit. Thats why the courts will not block this. Right now, MS has the upper hand. Even the FTC when they sued to block this, it was only to the Administrivia Court. Was not a real block. The FTC was looking to stand for the people and get the concessions they wanted.

Vrika · February 2023

Nanfoodle said:

Vrika said:

Slapshot1188 said:

My understanding is that folks long on Microsoft saw this as a win and a sign that the end result will be a few concessions before the deal goes through.

I think that's just Microsoft's PR game. They got a negative report, and are now trying to spin it as positively as possible.

Some of the concessions UK authorities speculated on that report include Microsoft selling Call of Duty, Microsoft selling Activision, and Microsoft selling Activision and Blizzard. There's no telling whether UK regulators are willing to allow the deal on any concessions that Microsoft would be willing to make.

Experts are saying that FTC and other regulatory bodies are asking for concessions because if they tried to block this, it would go threw in the courts. If or what concessions would be needed, would then be done at the court level, not the regulatory bodies....

I took time to read part for UK CMA's report. Based on it:

"As noted above, the circumstances in which the CMA might select a

behavioural remedy as the primary source of remedial action are not present

in this case...."

Source: https://assets.publishing.service.gov.uk/media/63e376bdd3bf7f173ad1cee4/Notice_of_possible_remedies_2.0.pdf (page 10)

"Behavioural remedy" means that UK authorities would agree to the sale as long as Microsoft promises act in certain way - for example they could agree to the sale provided Microsoft agrees to keep Call of Duty on other platforms. It's the alternative to "structural remedy", which would mean that UK would not allow Microsoft to own Activision Blizzard: They could either block the sale completely, or let Microsoft buy and keep only some parts of Activision Blizzard.

Based on that report, Microsoft has the option open to suggest a behavioral remedy. But UK officials don't themselves at the moment have any that they'd be asking because they think the circumstances in which they might select one are not present.

Nanfoodle · February 2023

Vrika said:

Nanfoodle said:

Vrika said:

Slapshot1188 said:

My understanding is that folks long on Microsoft saw this as a win and a sign that the end result will be a few concessions before the deal goes through.

I think that's just Microsoft's PR game. They got a negative report, and are now trying to spin it as positively as possible.

Some of the concessions UK authorities speculated on that report include Microsoft selling Call of Duty, Microsoft selling Activision, and Microsoft selling Activision and Blizzard. There's no telling whether UK regulators are willing to allow the deal on any concessions that Microsoft would be willing to make.

Experts are saying that FTC and other regulatory bodies are asking for concessions because if they tried to block this, it would go threw in the courts. If or what concessions would be needed, would then be done at the court level, not the regulatory bodies....

I took time to read part for UK CMA's report. Based on it:

"As noted above, the circumstances in which the CMA might select a
behavioural remedy as the primary source of remedial action are not present
in this case...."

Source: https://assets.publishing.service.gov.uk/media/63e376bdd3bf7f173ad1cee4/Notice_of_possible_remedies_2.0.pdf (page 10)

"Behavioural remedy" means that UK authorities would agree to the sale as long as Microsoft promises act in certain way - for example they could agree to the sale provided Microsoft agrees to keep Call of Duty on other platforms. It's the alternative to "structural remedy", which would mean that UK would not allow Microsoft to own Activision Blizzard: They could either block the sale completely, or let Microsoft buy and keep only some parts of Activision Blizzard.

Based on that report, Microsoft has the option open to suggest a behavioral remedy. But UK officials don't themselves at the moment have any that they'd be asking because they think the circumstances in which they might select one are not present.

As in all sales. Ask big and settle for what you really want. Just because they asked for something, does not mean that is their goal

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Tiller · February 2023

urriel1970 said:

sony is behind this trying to prevent microsoft from getting blizzard

Image: https://media.giphy.com/media/3o7TKL8SM4YJLr4waA/giphy.gif

Slapshot1188 · February 2023

Vrika said:

Slapshot1188 said:

My understanding is that folks long on Microsoft saw this as a win and a sign that the end result will be a few concessions before the deal goes through.

I think that's just Microsoft's PR game. They got a negative report, and are now trying to spin it as positively as possible.

Some of the concessions UK authorities speculated on that report include Microsoft selling Call of Duty, Microsoft selling Activision, and Microsoft selling Activision and Blizzard. There's no telling whether UK regulators are willing to allow the deal on any concessions that Microsoft would be willing to make.

I don't think so. I'm talking folks with a lot of money in the stock market. But time will tell. My gut tells me this gets approved, but as I do not own any MS stock, nor Activision... it's not really a big deal to me. I'd like to see the titles incorporated into Gamepass, but that's about the extent of my caring.

Nanfoodle · February 2023

Slapshot1188 said:

Vrika said:

Slapshot1188 said:

My understanding is that folks long on Microsoft saw this as a win and a sign that the end result will be a few concessions before the deal goes through.

I think that's just Microsoft's PR game. They got a negative report, and are now trying to spin it as positively as possible.

Some of the concessions UK authorities speculated on that report include Microsoft selling Call of Duty, Microsoft selling Activision, and Microsoft selling Activision and Blizzard. There's no telling whether UK regulators are willing to allow the deal on any concessions that Microsoft would be willing to make.

I don't think so. I'm talking folks with a lot of money in the stock market. But time will tell. My gut tells me this gets approved, but as I do not own any MS stock, nor Activision... it's not really a big deal to me. I'd like to see the titles incorporated into Gamepass, but that's about the extent of my caring.

I just want MS to win this so Sony and MS can spend the next ten years fighting over who gets my money. This ABK deal is the only thing that will give MS any teeth to be able to complete with Sony.

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