UK's CMA Blocks Microsoft's $69 Billion USD Bid for Activision Blizzard
The decision was made based on concerns that the acquisition would offer less innovation and choice for gamers in the cloud gaming business.
The UK’s Competition and Markets Authority (CMA) has deflected Microsoft Corp.’s $69 billion USD bid to take over Activision Blizzard Inc., making this one of the biggest deal blows in tech industry history.
The antitrust regulator raised concerns that the deal would eventually lead to less innovation and choice for gamers, and as a result, suppress the competition in the cloud gaming business. In a statement released today, it claimed, “The cloud allows UK gamers to avoid buying expensive gaming consoles and PCs and gives them much more flexibility and choice as to how they play. Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the development of these opportunities.”
Activision Blizzard is one of the largest developers in the video game sphere that produces popular games like “Call of Duty,” “World of Warcraft,” and “Overwatch.” Microsoft is the official manufacturer of Xbox, providing a video game subscription service called Xbox Game Pass and a cloud-based video game streaming service.
Brad Smith — Microsoft’s Vice Chair and President — has already announced that the tech giant has intentions to appeal and has called out the CMA for making this decision based on a flawed comprehension of the gaming and cloud markets.
You can view the CMA’s full statement here.
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