Microsoft's acquisition of Activision blocked by UK regulator

Michail, 26 April 2023

The UK’s Competition and Markets Authority (CMA) has ruled against Microsoft’s $68.7 billion acquisition deal of Activision Blizzard Entertainment. As per the CMA, the potential deal for Blizzard Entertainment would make Microsoft a dominant player in the cloud gaming sphere while in turn stifling competition and leaving UK gamers with less choice in the years to come.

Cloud gaming needs a free, competitive market to drive innovation and choice. Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming and this deal would strengthen that advantage giving it the ability to undermine new and innovative competitors.” - Martin Coleman, Panel Chair of the CMA

The CMA estimates that Microsoft accounts for 60-70% of global cloud gaming services via Windows and its Xbox portfolio and also notes Microsoft’s possibility of making Call of Duty games exclusive to its Xbox Game Pass service as the big hurdle that would lead to an unfair advantage over competitors.

Microsoft's Activision acquisition blocked by UK regulator

Microsoft and Activision Blizzard will appeal the CMA’s decision with the UK Competition Appeal Tribunal with both sides remaining committed to the acquisition. There are similar objections from the EU antitrust commission so we'll have to wait and see if the biggest deal in gaming will actually go down.



Reader comments

Microsoft should laugh cuz they can simply buy exclusive rights for 1 year or more like sony has done since day 1. Or buy bethesda 1st. Then later on buy activsion then blizzard. I dont get why some random guy has to come in and say no. Like bro....n...

Lol unfair advantage. Its not their fault they are a trillion dollar company while sony barely lives at 100 billion something. Once sony reaches 1 trillion. Microsoft would be in the quadrillion's.

Bro people in Japan still cannot play plauge tale requiem because Sony blocked local studio contracted by developer to translate game for Xbox lol. Sony signs exclusive deals and blocks every Japanese game developer to make a Xbox port. Ho...

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