Microsoft’s Acquisition of Activision Blizzard Blocked in the UK

Microsoft’s Acquisition of Activision Blizzard Blocked in the UK

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The reason is an interesting one.



In the most recent news regarding the acquisition of Activision Blizzard, Xbox has run into a hurdle with the UK government’s Competition and Markets Authority. Blocking the acquisition in the Uk, the CMA has cited the cloud gaming market as the reason for concern.

“Microsoft has a strong position in cloud gaming services and the evidence available to the CMA showed that Microsoft would find it commercially beneficial to make Activision’s games exclusive to its own cloud gaming service,” it said. “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.”

In response to this decision by the CMA, Microsoft president had this to say:

“We remain fully committed to this acquisition and will appeal. 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.”

Microsoft is expected to appeal the CMA’s verdict to potentially keep the deal going. So be prepared for this deal to go on even longer before we have a final verdict.