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Post by KostaAndreadis @ 09:58pm 26/04/23 | 0 Comments
The UK's CMA (Competition and Markets Authority) has blocked Microsoft's planned historic $69 billion deal to acquire Activision Blizzard. The firm cites concerns over the growing cloud gaming market as the reasoning behind the decision, with Microsoft responding that it remains "fully committed to this acquisition and will appeal."

The CMA blocking the deal is a major setback for Microsoft and could be the one decision that sees it fall apart - and quickly. The whole deal has been under intense scrutiny by regulatory bodies for over a year, and this decision could see the U.S.-based FTC follow suit and block the deal.

"The CMA has prevented Microsoft’s proposed purchase of Activision over concerns the deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come," the CMA wrote in its summary. The issue is that Microsoft is currently a major player in cloud gaming, and adding Call of Duty into the mix would give Microsoft an unfair advantage when it comes to cloud gaming services.

It's unclear where Microsoft goes from here; again, this is a major setback.

“We remain fully committed to this acquisition and will appeal,” says Microsoft president Brad Smith in a statement. “The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom. We have already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices, and we remain committed to reinforcing these agreements through regulatory remedies. We’re especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works.”


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