Update 07/06/2022: Microsoft has released a statement to IGN saying it will fully cooperate with the UK government's Competition and Markets Authority and welcomes the scrutiny.
"We will fully cooperate with the CMA’s merger review. We expect and think it’s appropriate for regulators to take a close look at this acquisition," said Lisa Tanzi, corporate vice president and general counsel. "We have been clear about how we plan to run our gaming business and why we believe the deal will benefit gamers, developers, and the industry.
"We’re committed to answering questions from regulators and ultimately believe a thorough review will help the deal close with broad confidence, and that it will be positive for competition. We remain confident the deal will close in fiscal year 2023 as initially anticipated."
Original Story: The UK government is launching an investigation into Microsoft's acquisition of Activision Blizzard.
The Competition and Markets Authority – which is responsible for ensuring fair competition between businesses in the UK – and ultimately that consumers are not exploited through means such as monopolisation – has opened an enquiry with an initial decision due on September 1.
As reported by CNBC, the investigation will "consider whether the deal could harm competition and lead to worse outcomes for consumers – for example, through higher prices, lower quality, or reduced choice." The Authority will spend the next two weeks collecting information and perspectives from involved parties.
While there have several complaints made because of the deal already (including by U.S. senators, the city of New York, and the U.S. Justice Department), a UK government watchdog launching an investigation into the $68.7 billion deal is a pretty significant move.
The decision in September will either determine that there's no issue, or will proceed into a more serious and in-depth phase two probe.
Microsoft's deal to purchase the Call of Duty publisher was made in January but it will likely be early 2023 before it officially goes through. Stockholders of Activision Blizzard approved the acquisition in April but there is still scepticism regarding the likelihood of it actually happening, heightened perhaps today by this UK government enquiry.
Ryan Dinsdale is an IGN freelancer who occasionally remembers to tweet @thelastdinsdale. He'll talk about The Witcher all day.