One of the most talked about and biggest deals resulting in Microsoft acquiring Activision is under scrutiny and has faced hurdles since its announcement. On Thursday, British authorities said their antitrust investigation needed to take a closer look at Microsoft's proposed acquisition of video game business Activision Blizzard after identifying competition issues. 

The USD 69 billion agreement, according to the Competition and Markets Authority, might affect rivals by limiting their access to Activision Blizzard games. It is also concerned that the combined business would cause rivalry in the budding cloud gaming market. According to the watchdog's senior director of mergers, Sorcha O'Carroll, noted, “Following our Phase 1 investigation, we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming.”  

The proposed acquisition is believed to be the largest in the technology industry's history, with Microsoft potentially gaining a monopoly status. Microsoft, the developer of the Xbox gaming system and console, would gain control over well-known game franchises including Candy Crush, World of Warcraft, and Call of Duty. The Competition and Markets Authority (CMA) has given both companies four more days to come up with solutions to the issues at hand; otherwise, it would step up its investigation. 

The acquisition is still under investigation by competition watchdogs from New Zealand to Brazil, as well as by US authorities who have been given more authority by President Joe Biden to tighten up their enforcement of antitrust rules. The increased scrutiny comes amid an increasing perception that previous examinations of Big Tech acquisitions, such as when Facebook acquired Instagram in 2012 and WhatsApp in 2014, were too light. With the proposed acquisition facing a series of investigations, it won’t be a smooth affair for Microsoft in closing the current deal.