Ahead of its full ruling in April, the U.K. Competition and Markets Authority said it no longer thinks the Microsoft-Activision deal is harmful, at least in terms of console competition (thanks, The Verge). The commission says in its new report that new consumer behavior data suggests it would be against Microsoft’s business interests to make Call of Duty exclusive to Xbox platforms.
The CMA didn’t describe the data or why it changed the board’s opinion. However, doubt about the deal’s effects on cloud gaming remain.
“Having considered the additional evidence provided, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action,” Martin Coleman, chair of the CMA’s panel of experts, said in a statement. “Our provisional view that this deal raises concerns in the cloud gaming market is not affected by today’s announcement. Our investigation remains on course for completion by the end of April.”
The CMA’s new report comes after Microsoft made deals with several platform holders, including Nvidia and Nintendo, promising to make Call of Duty available on them for the next 10 years, though the CMA didn’t mention those deals in its new report.
The European Union delayed its ruling in light of these deals, though the U.S. Federal Trade Commission’s lawsuit to block the deal remains ongoing.
Written by Josh Broadwell on behalf of GLHF
