The Competition and Markets Authority says it would lead to higher prices and fewer choices for gamers.
The UK’s Competition and Markets Authority (CMA) has said it is opposed to Microsoft’s planned purchase of games developer Activision Blizzard.
The CMA said it had provisionally concluded it would result in higher prices, fewer choices and less innovation.
The $69bn (£57bn) deal would see Xbox-maker Microsoft acquire hit titles such as Call of Duty and Candy Crush.
Microsoft said it would find solutions to “address the CMA’s concerns”.
Rima Alaily, Microsoft corporate vice-president and deputy general counsel, said: “Our commitment to grant long-term 100% equal access to Call of Duty to Sony, Nintendo, Steam and others preserves the deal’s benefits to gamers and developers, and increases competition in the market.”
She added that 75% of respondents to the CMA’s public consultation “agree that this deal is good for competition in UK gaming”.