The CMA was due to announce its final decision on Activision Blizzard and Microsoft’s ongoing merger today. Previously, the regulator dismissed concerns regarding console competition, choosing to focus on cloud competition going forward.
This meant that many had expected the UK regulator to approve the deal. However, the CMA’s final decision has been a shock to the gaming industry. In a surprising turn of events, the CMA has decided to block the Microsoft-Activision Blizzard merger.
The decision comes after the regulator believes Microsoft did not address concerns in the cloud gaming market.
Previously, Microsoft signed deals with various cloud-gaming providers like Ubitus, Nvidia, Boosteroid, and more. However, these did not meet the CMA’s expectations.
The gaming giant also provided remedies in an attempt to address these concerns, but the CMA found these remedies inadequate, stating that IPs like Call of Duty, Overwatch, and more would give Microsoft too big of an advantage over the market.
Following the decision, Microsoft’s Brad Smith has stated that the gaming giant will appeal the decision.
We remain fully committed to our acquisition with @ATVI_AB and will appeal today's determination by the CMA. Here's our statement. pic.twitter.com/ylvDP5RUqQ
— Brad Smith (@BradSmi) April 26, 2023
However, this might make the $68.7 billion acquisition much more complex than the gaming giant would have liked.
The FTC is already against the merger, going as far as to sue Microsoft over the deal. Microsoft hoped that the CMA’s approval would give the company an edge over other regulators, but this may not be the case anymore.
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