Bobby Kotick, CEO of Activision Blizzard, said blocking Microsoft’s takeover of the publisher would be a blow to the UK’s aim to become a tech superpower.
Last year, Microsoft acquired Activision Blizzard in a deal believed to be worth around $68 billion. However, the operation was criticized by many regulators and enthusiasts.
Last September, the UK’s Competition and Markets Authority (CMA) expressed concern that the merger could “harm rivals” and “harm competition” in the gaming sector. The CMA then confirmed that it would consider “an in-depth phase 2 investigation”, in the continuity of an investigation started last summer.
Earlier this week it was reported that the UK regulator would oppose the deal. The CMA plans to release its interim findings on the acquisition this week and advise interested parties of possible solutions to any antitrust issues it may raise.
During an interview with CNBC yesterday (February 7), Blizzard CEO Kotick said (via VGC): “Well, think of a post-Brexit UK…that’s probably the first country where you see a recession, and the really serious consequences of a recession.
“If we are the UK and we have an incredibly skilled workforce and a lot of technical talent […], I think we would like to accept a transaction like this, where we are going to see the creation of jobs and opportunities. And it’s not at all whether it’s Sony’s platform or Microsoft’s; it’s really about the future of technology”:
Kotick continued, “If a deal like this doesn’t go through, [el Reino Unido] It won’t be Silicon Valley, it will be Death Valley.”
On the other hand, the CEO said that regulators “don’t know our industry, so they try to catch up and understand the industry better.” And he added: “I don’t think they understand that it’s a free business. ”
Yesterday, Prime Minister Rishi Sunak announced the creation of a new independent government department for science, innovation and technology.
According to a GOV.UK press release, it will “drive innovation that will improve public services, create new, better-paying jobs and grow the economy.”
He adds: “Having a single department focused on turning scientific and technical innovation into practical and actionable solutions to the challenges we face will help ensure that the UK is the most innovative economy in the world. ”
It is believed that Microsoft has paid a lot of attention to the CMA, as this instance is considered less predictable than its counterparts in Europe and the United States. Therefore, this could influence decisions regarding the proposed merger.
Earlier this year it was reported that Microsoft was “likely” to receive an antitrust warning from the EU, as the European Commission prepared its “statement of objections” to the deal. These objections will need to be resolved before the transaction can proceed.
But in November 2022, Microsoft confirmed that it would offer “workarounds” to EU antitrust regulators in response to their formal objections.
This week’s New York Times report says Microsoft expects those same solutions to satisfy the UK’s CMA.
According to four people “informed of the matter who were not authorized to speak publicly”, Microsoft wants to “convince both Britain and the European Union to accept their concessions and approve the agreement , which could make it easier for the company to reach an agreement”. .” with the United States Federal Trade Commission before the start of the administrative trial scheduled for the summer.
Last December, the Federal Trade Commission (FTC) confirmed that it would try to prevent the acquisition of Activision Blizzard by Microsoft.
In its statement, the FTC claimed that Microsoft would “take control of major video game franchises, allowing it to harm competition in high-performance game consoles and subscription services by denying or demoting access to its rivals to its popular content”.
Sony also claimed that Xbox ownership of Call Of Duty could cause players to switch consoles, but Microsoft has made it clear that it intends to keep the long-running franchise on PlayStation and available on multiple platforms. .
Microsoft Gaming CEO Phil Spencer has repeatedly said that the company’s acquisition of Activision Blizzard has more to do with mobile gaming, rather than restricting AAA titles like COD.