Canada's Bold Stand: The Shocking Truth Behind Microsoft's Activision Blizzard Acquisition

The Canadian regulatory authority has expressed its opinion on the proposed Microsoft-Activision deal, stating that it believes the merger will harm competition in the industry. This information was revealed during Microsoft's ongoing testimony in front of the Federal Trade Commission, who are working to prevent the Microsoft-Activision deal from moving forward. Microsoft's attempt to acquire Activision-Blizzard has faced challenges from global regulatory authorities and competitors. The UK's CMA, the EU, and the USA's FTC have all conducted separate investigations, with the EU approving the merger under certain conditions and the CMA deciding to block the deal. The Canadian regulator is currently conducting its own investigation into the matter, further adding to Microsoft's concerns.

According to The Verge's Tom Warren, the Canadian Regulatory Bureau has raised concerns about the accuracy of Microsoft's filings. While Microsoft claims that all regulatory authorities, except for the FTC and CMA, agree that Xbox will not remove Call of Duty from PlayStation, the Canadian regulator disputes this and states that the proposed merger will likely diminish competition in gaming consoles and multigame subscription services. However, Microsoft swiftly responded by stating that the Canadian regulator's notice was sent after the formal waiting period to prevent the deal had already expired.

Although Canada's decision may not be in Microsoft's favor, several other countries such as China, Brazil, Saudi Arabia, Japan, South Africa, and Serbia have approved the deal, strengthening Microsoft's position. On the other hand, Sony is still attempting to block the deal, with Jim Ryan of PlayStation testifying before the FTC that Xbox Game Pass is detrimental and not favored by game publishers.

The exclusivity of Call of Duty is the main point in this agreement and Sony's primary concern. Microsoft proposed a 10-year deal to keep Call of Duty on PlayStation, but Sony was not satisfied. In the ongoing trial, Phil Spencer, the head of Xbox, promised to maintain Call of Duty on PlayStation, but evidence presented during the hearing showed that Microsoft's intention was to surpass Sony's spending and potentially eliminate them from the market. Therefore, regulatory bodies and other competitors may not be convinced by their claims.