Regulatory Opposition Mounts Over Activision For Microsoft Deal, UK's Regulatory Watchdog Objects

Months after the U.K.'s Competition and Markets Authority (CMA) launched an antitrust investigation into Microsoft Corp's MSFT $68.7 billion Activision Blizzard Inc ATVI takeover, the regulator flagged concerns about cloud and console gaming.
The provisional findings from the Competition and Markets Authority (CMA) follow a wide-ranging investigation conducted over the last five months to understand the market and potential impact of the deal.
A CMA investigation has provisionally concluded that the deal could result in higher prices, fewer choices, or less innovation for U.K. gamers.
The merger could make Microsoft even stronger in cloud gaming, stifling competition in this growing market and harming U.K. gamers who cannot afford expensive consoles.
The deal could also harm U.K. gamers by weakening the rivalry between Xbox and Sony Group Corp SONY PlayStation gaming consoles.
In February, the European Commission sent a formal list of concerns to Microsoft about the takeover, marking an escalation in the regulatory body's probe of the deal.
The commission had concerns that Microsoft might "foreclose access to Activision Blizzard's console and PC video games, especially to high-profile and highly successful games" when it initiated the investigation last November.
In January, Alphabet Inc's GOOG GOOGL Google and Nvidia Corp NVDA shared concerns over the deal with the FTC, fueling regulatory worries.
Price Action: ATVI shares traded lower by 2.59% at $73.65 on the last check Wednesday.

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Regulatory Opposition Mounts Over Activision For Microsoft Deal, UK's Regulatory Watchdog Objects