The Redmond-based tech company has responded to concerns raised by the UK’s Competition and Markets Authority (CMA).

In September, the CMA announced that its first-round investigation into Microsoft’s proposed acquisition of Activision Blizzard had been insufficient and that it was sending the inquiry to a more thorough review, phase two: “Following our Phase 1 investigation, we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming.”

Now, however, a more detailed explanation has come from the authority: “After examining a range of evidence, the CMA believes that the Merger meets the threshold for reference to an in-depth phase 2 investigation, giving rise to a realistic prospect of a substantial lessening of competition (SLC) in gaming consoles, multi-game subscription services, and cloud gaming services. Acquiring ABK would significantly expand Microsoft’s gaming library, adding some of the world’s best-selling and most recognizable franchises, including Call of Duty, World of Warcraft, and Candy Crush.

The CMA is concerned that having complete control over this robust catalogue, especially in light of Microsoft’s already strong position in gaming consoles, operating systems, and cloud infrastructure, could result in Microsoft harming consumers by impairing Sony’s—Microsoft’s closest gaming rival—ability to compete as well as that of other existing competitors and potential new entrants who could otherwise bring healthy competition through innovative multi-game subscriptions and cloud gaming services.,” the CMA says.

It was not lost on Microsoft, which sent Gamesindustry this statement in response: “In short, Sony is not vulnerable to a hypothetical foreclosure strategy, and the Referral Decision incorrectly relies on self-serving statements by Sony which significantly exaggerate the importance of Call of Duty to it and neglect to account for Sony’s clear ability to respond competitively. While Sony may not welcome increased competition, it can adapt and compete. Gamers will ultimately benefit from this increased competition and choice.”

Meanwhile, Brazil has already approved Microsoft’s move, but it remains to be seen whether the United States (FTC) and the European Union (European Commission) will approve the nearly $70 billion acquisition.

Source: WCCFTech