Microsoft’s Activision Deal Draws Further Scrutiny From U.K. Watchdog

The U.K.’s competition regulator said it would escalate its investigation into whether Microsoft planned acquisition of Activision Blizzard could harm competition in the videogame industry, adding uncertainty to the $75 billion deal in one of the world’s largest markets for interactive entertainment.

Earlier this month, the Competition and Markets Authority asked the companies to answer questions to address competition concerns. The regulator, which started its investigation into the deal in July, said Thursday that the probe will now enter a second phase involving a panel of independent reviewers.