June 30, 2023
According to the Competition Bureau of Canada, Microsoft’s proposed acquisition of Activision Blizzard will certainly result in reduced competition in various elements of gaming.
In a letter to Microsoft’s attorneys, the Competition Bureau of Canada stated that the purchase would likely limit competition in the market for gaming consoles and multigame subscription services. It was also concerned that the merger will give Microsoft too much power over the cloud gaming sector.
The Bureau’s decision is the latest in a string of setbacks for Microsoft’s proposed acquisition of Activision Blizzard. In June, the US Federal Trade Commission sued on grounds that it would harm competition in the video game market and give Microsoft control over some of the world’s most popular video game franchises.
In response, Microsoft claims it is committed to addressing the Competition Bureau’s and other antitrust regulators’ concerns, and that it is prepared to sell part of Activision Blizzard’s assets to resolve market dominance concerns.
The sources for this piece include an article in Reuters.
