Microsoft’s Activision Blizzard buyout is being investigated by UK government regulator

The Competition and Markets Authority are on the case

The UK government’s competition regulator is to investigate Microsoft’s $68.7 billion (£57 billion) buyout of Activision Blizzard, the Competition and Markets Authority (CMA) announced yesterday. A provisional deadline to decide whether the merger will be referred for a more in-depth investigation has been set for September 1st, and the CMA has invited “any interested party” to comment on the merger up until July 20th.

Microsoft’s corporate vice president and general counsel Lisa Tanzi toldCNBC: “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.”

The surprise announcement that Microsoft intended to merge with Activision Blizzardraised eyebrowsback in January. Although Activision Blizzard shareholders overwhelmingly approved the merger at a meeting in April, four United States senatorswroteto the Federal Trade Commission earlier that month to question whether it was the best deal for workers. The senators also raised concerns over the continued presence of CEO Bobby Kotick at Activision Blizzard during the process of the merger, despitecallsfor him to resign. Kotick was recentlyre-electedto the company’s board of directors for a further year. In June, the FTCsaidthey would scrutinise the merger, and the Australian government also began their owninvestigation.

Activision Blizzard might be bought out, but they’re still contending with legal issues and allegations ofsexual harrasment,poor working conditionsandworkplace discrimination. Pension funds based in New York are currentlyseeking accessto the company’s records in pursuit of CEO Bobby Kotick following the announcement of the Microsoft buyout. Last month, Activision Blizzard’s board of directors issued astatementsaying that external advisors found there was no evidence the company tolerated any reported harassment, but admitted that there had been some substantiated incidents of gender harassment.