UK Competition Authority Questions Microsoft-Activision Acquisition of Cloud Gaming Rights
The UK competition authority (CMA) has expressed concerns over Microsoft’s and Activision’s acquisition of exclusive cloud gaming rights. The CMA is worried that the new deal will limit the UK’s access to gaming, as well as increase prices for cloud gaming services.
The Competition and Markets Authority (CMA) says that games companies of all sizes may not be able to compete and the UK’s gaming industry could become less competitive. The CMA is also concerned that Microsoft and Activision could use their control over cloud gaming rights to prevent developers and publishers from offering a wide range of gaming experiences to the public.
Microsoft and Activision have defended the acquisition, stating that cloud gaming will bring revolutionary new gaming experiences to the public. They also point out that the new deal will bring new investments and jobs to the UK and will enable Microsoft and Activision to create a competitive marketplace.
The CMA is now asking Microsoft and Activision for additional information to assess the impact of the deal on the competition in the UK.
In response to the CMA’s inquiry, a Microsoft spokesperson said: “We are committed to delivering innovative game experiences on the Xbox platform. We strongly believe that the addition of cloud gaming technologies to the Xbox platform will make gaming more accessible and enable game developers and players to access new experiences. We look forward to engaging with the CMA on this important issue.”
In a statement, Activision Blizzard said: “We are confident that our agreement with Microsoft will create a competitive and vibrant market, allowing players to discover great gaming experiences and developers to create innovative games. We look forward to working with the CMA and other regulatory bodies to ensure that this agreement is in the best interests of players and the UK gaming industry.”
The CMA is set to continue its investigation into the deal, and have indicated that they may take further action if they feel the agreement is anti-competitive.