UK Probing Microsoft's $687-B Activision Blizzard Acquisition

The UK competition regulator announced the initiation of an antitrust probe into Microsoft's proposed $68.7 billion acquisition of video game behemoth Activision Blizzard on Wednesday, according to CNN's Brian Fung.

Photo Insert: The UK Competition and Markets Authority (CMA) is seeking public comments on the topic as part of the inquiry until July 20.

"We expect and think it's appropriate for regulators to take a close look at this acquisition," Lisa Tanzi, corporate vice president & general counsel at Microsoft, said in a statement Wednesday.

"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," Tanzi added.

"We remain confident the deal will close in fiscal year 2023 as initially anticipated."

The UK Competition and Markets Authority (CMA) is seeking public comments on the topic as part of the inquiry until July 20. The CMA may then assess whether a more thorough investigation is necessary based on the evidence. The agency has a deadline of September to make that decision, though the actual date may change.

Microsoft has attempted to anticipate regulatory scrutiny surrounding its transaction, which it claims will make it the world's third-largest game publisher after Tencent and Sony. (In another acquisition that adds to industry consolidation, Sony announced in February that it is buying the game firm Bungie for $3.6 billion).

Microsoft has launched a global charm drive in order to preempt regulatory concerns.

In February, it outlined a number of pledges related to its gaming business in order to allay fears that its role as a gatekeeper could give it anticompetitive clout over game publishers or software developers, a charge that has also plagued Apple and Google around the world.

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