How we investigated the Microsoft and Activision Blizzard merger
Information on how the CMA investigated the merger, and how you can find out more.
All documents and updates relating to our investigation are available on the Microsoft/Activision Blizzard investigation page.
Our final decision
The CMA decided to prohibit Microsoft’s proposed purchase of Activision on 26 April 2023.
Read the decision on the Microsoft and Activision case page
How a Phase 2 merger investigation works
A Phase 2 merger goes through the following key stages:
Our Phase 1 investigation
We first carry out an initial review of the deal to determine whether there are any competition concerns. This is known as our Phase 1 investigation.
If we aren’t concerned about the deal, we clear it. But if we have competition concerns that are not solved during our initial review, we carry out a more in-depth investigation, known as Phase 2.
Phase 2 investigation begins
At Phase 2, we build on our work at Phase 1 and gather more evidence from the merging businesses and others to investigate potential issues with competition that could arise as a result of the merger.
Issues Statement published
The Issues Statement shows the focus of our Phase 2 investigation and sets out what are called ‘theories of harm’, which are the potential concerns that we are investigating.
At this point we invite anyone, including members of the public, to share their views with us.
Analysis of evidence
After publishing our Issues Statement, we continue gathering and reviewing evidence, and we often meet with the businesses proposing to merge and their representatives ‘on site’ to learn more about their business. We then hold hearings with the main parties (and sometimes third parties) to ask them questions about the evidence that we have received and explore key issues.
If we think the merger could have a negative impact on competition, we also start thinking about potential solutions to those concerns (known as ‘remedies’).
Provisional findings
Once we have a good understanding of the business of the organisations proposing to merge, and a strong evidence base, we publish our ‘provisional findings’. This document outlines our provisional decision on the merger.
If we still have concerns, we will also send the merging businesses our thoughts on possible solutions, in a document referred to as a ‘remedies notice’.
Final report
This includes our final decision on the merger, including whether we believe it would harm competition for consumers or businesses in the UK.
If we find no competition concerns, the deal can go ahead as planned. If we do find competition concerns, we decide how these should be remedied. For example, this can include selling part of the business or prohibiting the merger altogether.
More detailed information on how the CMA runs merger investigations can be found in our Guidance on Mergers, CMA2.
A Phase 2 merger inquiry is an in-depth investigation into the impact of a merger on competition and its effect on businesses, consumers and the economy as a whole.
Every Phase 2 inquiry is run by an appointed inquiry group. This is an independent panel made up of 3 to 5 people with a range of business, finance, economic and legal experience. They provide independent advice on the inquiry and are responsible for making the final decision on the case.
Last updated 26 April 2023 + show all updates
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Information added following publication of the final report.
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Updated with details about our provisional findings.
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First published.