While the acquisition of Activision Blizzard by Microsoft seemed to be on the right track, a new obstacle stands up, and not the least. Indeed, the Competition and Markets Authority has just delivered its verdict on the takeover project, and it is a definite no from the UK regulator.
A refusal motivated in particular by concerns about the cloud gaming sector. The regulator believes the deal could alter the future of the cloud gaming market and ultimately lead to reduced innovation and choice for UK gamers for years to come.
“We remain fully committed to this acquisition and will appeal. The CMA ruling rejects a pragmatic way to address competition concerns and discourages technological innovation and investment in the UK. We’ve already signed deals to make popular Activision Blizzard games available on an additional 150 million devices, and we remain committed to bolstering those deals with regulatory action. We are particularly disappointed that after much deliberation, this decision appears to reflect a misunderstanding of this market and how cloud technology actually works. »
Brad Smith – President of Microsoft
The decision, of course, is not yet final as Microsoft still has the option of appealing to the UK’s Competition Appeal Tribunal. A way out that would allow Microsoft not to see its project collapse and the CMA to negotiate some additional concessions from the publisher. It remains to be seen what impact this announcement will have on other regulators. Because if Japan had spoken favorably to the acquisition of Activision Blizzard by Microsoft, this is not yet the case for the American and European competition authorities.