In January 2022, Microsoft introduced that it is going to achieve Activision Blizzard for a whopping $68.7 billion making it one of the vital largest acquisitions within the tech trade. However, for the deal to move thru, Microsoft wanted approvals from regulators. In a blow to the Satya Nadella-led corporate, the United Kingdom has now blocked the deal. The UK’s Competition and Markets Authority (CMA) mentioned that “the merger could make Microsoft even stronger in cloud gaming, stifling competition in this growing market.”
Microsoft stays undeterred and can attraction
In a commentary, Brad Smith, president, Microsoft mentioned that the corporate will attraction the verdict and that it stays dedicated to the purchase.”The MA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom, said Smith in a statement.
The CMA argued that Microsoft is already dominant in the cloud gaming services and that if the acquisition goes through then “Microsoft would in finding it commercially really helpful to make Activision’s video games unique to its personal cloud gaming provider.”
Smith said in the statement that Microsoft has already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices. “We remain committed to reinforcing these agreements through regulatory remedies,” said Smith.
What is CMA’s concern?
CMA’s concern is that the deal would reinforce Microsoft’s advantage in the market by giving it control over important gaming content such as call of duty, Overwatch, and World of Warcraft. “The evidence available to the CMA indicates that, absent the merger, Activision would start providing games via cloud platforms in the foreseeable future,” said the regulator in a press release.
Martin Coleman, chair of the independent panel of experts conducting this investigation, said “Microsoft engaged constructively with us to take a look at to deal with those problems and we’re thankful for that, however their proposals weren’t efficient to treatment our issues and would have changed pageant with useless law in a brand new and dynamic marketplace.
Smith added that the regulator had a mistaken working out of the marketplace. “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.”
Microsoft stays undeterred and can attraction
In a commentary, Brad Smith, president, Microsoft mentioned that the corporate will attraction the verdict and that it stays dedicated to the purchase.”The MA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom, said Smith in a statement.
The CMA argued that Microsoft is already dominant in the cloud gaming services and that if the acquisition goes through then “Microsoft would in finding it commercially really helpful to make Activision’s video games unique to its personal cloud gaming provider.”
Smith said in the statement that Microsoft has already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices. “We remain committed to reinforcing these agreements through regulatory remedies,” said Smith.
What is CMA’s concern?
CMA’s concern is that the deal would reinforce Microsoft’s advantage in the market by giving it control over important gaming content such as call of duty, Overwatch, and World of Warcraft. “The evidence available to the CMA indicates that, absent the merger, Activision would start providing games via cloud platforms in the foreseeable future,” said the regulator in a press release.
Martin Coleman, chair of the independent panel of experts conducting this investigation, said “Microsoft engaged constructively with us to take a look at to deal with those problems and we’re thankful for that, however their proposals weren’t efficient to treatment our issues and would have changed pageant with useless law in a brand new and dynamic marketplace.
Smith added that the regulator had a mistaken working out of the marketplace. “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.”