Microsoft fends off Sony in disagreement over UK regulations

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Microsoft and Sony are publicly arguing over the former's potential acquisition of Activision Blizzard. Specifically, the UK Competition and Markets Authority (CMA) has been investigating the merger and Sony has already filed complaints with the regulator. The main focus of the fight is the lucrative Call of Duty franchise.

In September, the CMA announced its intention to deepen the merger. Today he published the full text of his reasoning explaining why he believes the matter warrants further investigation. In the text, it says: “The CMA is concerned that having full control over [Activision Blizzard's] powerful catalog, especially in light of Microsoft's already strong position in game consoles, operating systems and cloud infrastructure, could cause Microsoft to harm consumers by impeding the ability to compete with Sony, Microsoft's closest gaming rival, as well as other existing competitors and potential new entrants that could otherwise bring healthy competition through innovative multi-game subscriptions and cloud gaming services. »

Sony decried the merger. A spokesperson told GamesIndustry.biz in September: "By giving Microsoft control of Activision games like Call of Duty, this deal would have major negative implications for gamers and the future of the gaming industry. We want to ensure PlayStation players that they continue to enjoy the highest quality gaming experience, and we appreciate the CMA's focus on player protection. »

This fight between the two companies took place on an open stage. Microsoft's Phil Spencer and Sony's Jim Ryan spoke on the subject personally. Now, Microsoft has reacted to the CMA's decision to further examine the acquisition, implying that the regulator listened too much to Sony's complaints.

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In Microsoft's rebuttal, as reported by Tom Warren of The Verge, it all accuses regulators of pandering to Sony's complaints. He says, "[The CMA] adopts Sony's complaints without the proper level of critical scrutiny." He adds, "Sony is not vulnerable to a hypothetical lockdown strategy, and the dismissal decision is wrongly based on self-serving statements by Sony that greatly exaggerate Call of Duty's importance to it."

Microsoft clarifies that it has no reason to remove Call of Duty from PlayStation users, as it would only hurt Microsoft. He adds: “The value of Call of Duty depends on its community of players, the majority of whom are on PlayStation. Keeping Call of Duty on PlayStation is therefore a business imperative for the Xbox business."

In fact, Microsoft seems almost self-effacing in its response. He says: "Sony PlayStation has been the largest console platform for over 20 years, with an installed base of over 150 million consoles...more than twice the size of Xbox." He describes his own company as "last in console, seventh in PC and nowhere in mobile game distribution worldwide".

A final note: the CMA text amusingly notes that it doesn't...