A PYMNTS Company

Microsoft Claims UK Watchdog Swayed Sony Bias On $69B Deal

 |  October 12, 2022

This week Microsoft has accused UK’s competition watchdog of relying on “self-serving” input from rival Sony inits decision to probe the tech giant’s $69 Billion takeover of Activision Blizzard, reported Reuters.

The Competition and Markets Authority (CMA) said last month that the acquisition could harm competition and needed to be investigated in depth.

Microsoft could use its control over popular games to harm rivals, including those operating in multi-game subscription services and cloud gaming, it said.

“The CMA is concerned that having full control over this powerful catalogue (…) could result in Microsoft harming consumers by impairing Sony’s — Microsoft’s closest gaming rival— ability to compete,” it said.

Microsoft said the CMA had adopted Sony’s complaints without the “appropriate level of critical review”.

In its submission, it said Sony’s PlayStation had been the largest console platform for more than 20 years, and it was not credible to suggest its dominance would be challenged by losing access to one title.

“The Referral Decision incorrectly relies on self-serving statements by Sony which significantly exaggerate the importance of ‘Call of Duty’ to it and neglect to account for Sony’s clear ability to competitively respond,” Microsoft said.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.