The UK antitrust watchdog has launched an investigation into Microsoft Corp’s plan to buy Activision Blizzard Inc.joining other regulators studying the $69 billion video game deal.

The Competition and Markets Authority (CMA, for its acronym in English) reported a few days ago that it will consider whether the agreement to combine the technology giant with the franchise manufacturer Call of Duty it will hurt competition and lead to higher prices or reduced choice.

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The regulator said it will work with counterparts around the world and has set an initial deadline of September 1 to decide whether to launch an in-depth investigation.

The CMA has long advocated for a more forceful approach to reviewing deals, particularly by the largest tech companies.

Regulators are likely to watch closely how Microsoft’s control of Activision could hurt rivals by limiting their access to the company’s biggest games.

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The US Federal Trade Commission (FTC) is also reviewing the deal, Chairman Lina Khan told lawmakers in June.

“We’ve been clear about how we plan to run our games business and why we believe the deal will benefit gamers, developers and the industry,” said Lisa Tanzi, general counsel at Microsoft.

“We are committed to answering questions from regulators, and ultimately believe a thorough review will help close the deal with broad confidence and be a positive for competition.”

Tanzi said the firm expected the deal to close in 2023. An Activision spokesman did not immediately respond to a request for comment.

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The FTC’s Activision investigation will focus on the combination of the company’s gaming portfolio with Microsoft’s consoles and hardware systems.
Lawmakers have also urged the FTC to take a closer look at how the proposed settlement would affect Activision workers, who have called for more accountability from the company in the wake of allegations of sexual harassment and discrimination.

Microsoft wants Activision so it can increase the number of games it can offer exclusively to those who participate in its Game Pass subscription service for Xbox consoles.

Activision is home to some of the world’s most popular game franchises, including Call of Duty, Candy Crush, Guitar Hero, Skylanders, Destiny, Crash Bandicoot and skate games Tony Hawk.

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The company is a major player in the mobile gaming segment, while Microsoft is on the sidelines at best. The agreement would address this in a significant way.

Activision isn’t the only target Microsoft had as part of its expansion plan for Game Pass. In 2020, it agreed to acquire ZeniMax Media Inc., home to The Elder Scrolls, and the firm behind Doom, Bethesda Softworks, for $7.5 billion. It also owns Mojang, the creator of Minecraft.

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