CMA publishes statement from Sony and response from Microsoft

The full statement of Sony and Microsoft’s response to concerns over the CMA’s acquisition of Activision Blizzard has been released.

The British competition authority, the Competition and Markets Authority (CMA), has now published two documents from Sony and Microsoft.

The first document is Sony’s October 28, 2022 statement on the CMA’s concerns about Microsoft’s acquisition of Activision Blizzard.

The 22-page document states, among other things, that Sony “the transaction threatens an industry used by hundreds of millions of consumers” and “post-merger, Microsoft would have the ability and incentive to compete against competitors, including PlayStation and PlayStation Plus, ban or restrict access to Call of Duty.”

Sony also sees a risk of damage to independent developers if Call of Duty were to end up exclusively in Xbox Game Pass. The acquisition “would send demand for multi-game subscription services to Xbox/Game Pass” and would exclude PlayStation with PlayStation Plus from the market as Microsoft would become a major distribution channel for indie developers.

Microsoft sees things differently. In the second document, which addresses the CMA’s concerns, the Xbox group says “the merger is inherently pro-competitive because it increases competition in a market that has long been dominated by Sony.”

Microsoft finds that Activision’s content is popular and enjoyed by millions of gamers around the world. But neither Activision nor Call of Duty would have such market power.

Activision’s content is popular and enjoyed by millions of gamers around the world, Microsoft admits. However, neither Activision nor Call of Duty would have such significant market power or “major input” status.

Below we have linked the complete documents of both parties as a PDF, in which, despite blackened areas, other interesting views and facts are certainly hidden.

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