UK gamers caught in crossfire over $69bn Call of Duty deal

THE competition watchdog has threatened to block Microsoft’s $69bn (£57bn) merger with Activision Blizzard or force the PC maker to sell the best-performing video game involved in the deal.

The Competition and Markets Authority (CMA) said it was considering ordering “divestiture of the business associated with Call of Duty” after an indepth investigation of the deal.

Activision’s Call of Duty, in which players control soldiers in wars, is one of the world’s most popular games. Various titles have sold more than 400m copies.

The CMA said Microsoft could be incentivised to make Call of Duty exclusive to its Xbox consoles, thereby locking out Sony’s Playstation, reducing competition and increasing prices. The availability of exclusive games can prompt players to switch consoles and is viewed as critical to boosting sales.

Martin Coleman, chairman of the inquiry, said: “Our job is to make sure that UK gamers are not caught in the crossfire of global deals that, over time, could damage competition and result in higher prices, fewer choices, or less innovation. We have provisionally found that this may be the case here.”

The decision is a significant blow to Microsoft, given Call of Duty’s crown jewel status for Activision Blizzard. The US company also owns titles including online fantasy game World of Warcraft and mobile game Candy Crush.

Activision Blizzard has warned an attempt to block the deal would scupper Rishi Sunak and Jeremy Hunt’s hopes of challenging the dominance of Silicon Valley. Bobby Kotick, chief executive, told CNBC: “If a deal like this can’t

‘If a deal like this can’t get through, they are not going to be Silicon Valley, they will be Death Valley’

get through, they are not going to be Silicon Valley, they will be Death Valley.” The CMA threatened to block the deal altogether unless Microsoft agrees to sell Call of Duty or other significant parts of the business off as part of the merger. The regulator said it would make a final decision in April.

The merger has attracted opposition from Sony, which has claimed Microsoft could use the deal to limit its access to future Call of Duty games.