More Trouble? New Zealand believes Activision purchase will harm Sony

Microsoft's purchase of Activision Blizzard has already been approved by at least 37 countries; however, the companies still face several obstacles to close their important deal. Like the CMA and the FTC, the New Zealand Commerce Commission has not yet given its verdict on the case.

In fact, the agency recently postponed the date to make a definitive decision. This is because they still have doubts about the agreement, specifically regarding cloud gaming. The New Zealand Commerce Commission shares the CMA's view, as they fear that the agreement may damage this market and affect companies such as Sony.

New Zealand believes Activision purchase will harm the cloud gaming market

The New Zealand Commerce Commission issued a statement expressing its doubts and concerns about Microsoft's purchase of Activision Blizzard. Their stance may sound familiar, as they also fear that the acquisition could harm the cloud gaming market and other companies in the sector.

The agency believes that Microsoft can partially or completely exclude "its rivals in cloud gaming." This can be done through restricted access to certain content, which can damage competition in this industry.

The authorities explicitly mention Sony and Nvidia, companies that could allegedly suffer the consequences of mismanagement of Activision Blizzard content, including Call of Duty. This argument caught many people's attention, as Microsoft and Nvidia have already closed an agreement related to cloud gaming.

On the other hand, the New Zealand agency still considers the possibility that Microsoft could harm Sony in the console market by also restricting access to certain Activision Blizzard content.

"If Activision's games are important enough to drive sales of cloud gaming or video game consoles, the merged entity could have both the incentive and the ability to prevent its rivals from accessing this content, weakening their ability to compete," the regulator said.

Now, Microsoft and Activision Blizzard have until July 4 to submit evidence to the New Zealand Commerce Commission.