Microsoft’s Attempt to Acquire a Mobile Games Publisher Revealed by CMA Report
After the recent developments over Activision acquisition, it has been discovered that the report by the CMA has shed some light on how Microsoft had attempted to acquire a mobile games publisher as a part of its strategy to strengthen its presence in the mobile gaming market.
For context, earlier this week, CMA had halted Microsoft’s acquisition over cloud gaming concerns.
It believed that the acquisition could potentially create an unfair advantage for Microsoft in the cloud gaming market by limiting consumer choices.
According to the CMA report, on page 394, Microsoft has been looking to become more competitive in the mobile gaming industry by acquiring companies with some level of standing in this sector. The report quotes Microsoft’s submission, about how Activision actually possesses the necessary strength in mobile gaming.
However, CMA argues that Microsoft could then also achieve this by adopting less anti-competitive means, such as acquiring a different mobile games publisher. Interestingly, the CMA report reveals that this was also something that Microsoft had dug into, as it had previously attempted to acquire a mobile games publisher, the name of which has not been publicized.
The CMA report suggests that Microsoft could still acquire “attractive content and experience with player engagement and acquisition” by approaching or acquiring a different mobile games publisher, without resorting to anti-competitive measures.
Here’s the section from CMA’s report:
We note Microsoft’s submission that Activision has significant strength
CMA’s report, page 394.
in mobile gaming, and consider that the presence of Activision’s games on
any mobile gaming store would enhance its competitiveness. However, we
also consider that this could be achieved by less anti-competitive means than
the Merger, and Microsoft could acquire ‘attractive content and experience
with player engagement and acquisition’1563 by buying a different mobile
games publisher. This appears to have been Microsoft’s strategy – it
attempted to buy [] in [], and said [].
What this would do is that it would help Microsoft maintain a healthy competition in the mobile gaming market and also adhere to the regulatory guidelines set by the CMA.
The company clearly wants to succeed in the mobile gaming market, but the authorities have asked Microsoft to use more fair methods to reach their goals. It’s still uncertain how Microsoft will move forward with its plans for mobile gaming while following the rules set by the CMA.
Whatever it is, we will make sure to keep you updated as new information becomes available.
