Activision Blizzard’s Call of Duty: Modern Warfare video game is embedded into Microsoft’s Xbox One video game console, hosted in Denver, Colorado on Wednesday, Jan. 19, 2022.

Michael Chaglo | Bloomberg | Getty Images

Britain’s competition regulator said on Wednesday that Microsoft’s $69 billion acquisition of gaming giant Activision Blizzard could harm competition in the UK gaming market.

In a press release on Wednesday, the Competition and Markets Authority said the takeover was likely to significantly reduce competition, leading to higher prices, less choice and less innovation in the sector.

The CMA has sent letters to Microsoft and Activision Blizzard outlining possible solutions to its concerns. Companies have until February 22 to respond. The regulator has not publicly released its proposed remedies.

“We are committed to providing effective and easy-to-implement solutions that address CMA’s challenges,” Reema Alaili, Microsoft’s corporate vice president and deputy general counsel, said in an emailed statement to CNBC.

“Our commitment to long-term 100% equal access to Call of Duty for Sony, Nintendo, Steam and others preserves the benefits of the deal for gamers and developers and increases competition in the marketplace.”

Microsoft defines “100% equal access” as offering 10 years of parity in content, pricing, features, quality and playability.

Shares of Activision Blizzard fell 4.6% in premarket trading in the US on Wednesday following the CMA announcement.

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