Technology

Microsoft’s $69 billion Activision takeover could harm gamers, British regulator says

Microsoft's  billion Activision takeover could harm gamers, British regulator says

An Activision Blizzard’s Call of Duty: Modern Warfare video game is inserted into the Microsoft’s Xbox One video game console arranged in Denver, Colorado, on Wednesday, Jan. 19, 2022.

Michael Ciaglo | Bloomberg | Getty Images

The British competition regulator said Wednesday that Microsoft’s $69 billion acquisition of gaming giant Activision Blizzard could harm competition in the U.K. gaming market.

In a Wednesday press release, the Competition and Markets Authority stated that the takeover would likely lead to a substantial lessening of competition, resulting in higher prices, fewer choices and less innovation in the sector.

The CMA has sent letters to Microsoft and Activision Blizzard outlining possible remedies to its concerns. The companies have until Feb. 22 to respond. The regulator has not published its proposed remedies publicly.

Activision Blizzard shares were down 4.6% in U.S. pre-market trading Wednesday, following the CMA announcement.

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