U.K. warns Activision merger gives Microsoft 'unparalleled advantage'

In July, the CMA launched its own inquiry into Microsoft's $68.7 billion acquisition of Activision Blizzard to determine if the merger could meaningfully reduce healthy competition in the U.K. gaming market. After completing the first phase of its investigation Thursday, the CMA concluded that the deal could result in a "substantial lessening of competition" for game consoles, subscription services and cloud gaming after reviewing over a thousand internal documents from Microsoft and Activision Blizzard. In particular, the CMA said that Microsoft's current assets combined with Activision Blizzard's could block out future competitors as the gaming industry as a whole moves on from digital storefronts to cloud gaming and subscription services.