Breaking: Microsoft vows to appeal as the UK regulator blocks its acquisition of Activision Blizzard

gamesindustry.biz:

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The UK's Competition and Markets Authority has announced it's "preventing" Microsoft's proposed acquisition of Activision Blizzard "over concerns the deal would alter the future of the fast-growing cloud gaming market."

In its statement, the CMA said that Microsoft "failed to effectively address the concerns in the cloud gaming sector."

Reacting to the CMA's decision, Microsoft vice chair and president Brad Smith said: "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."

An Activision Blizzard spokesperson added: "The CMA’s report contradicts the ambitions of the UK to become an attractive country to build technology businesses. We will work aggressively with Microsoft to reverse this on appeal. The report’s conclusions are a disservice to UK citizens, who face increasingly dire economic prospects. We will reassess our growth plans for the UK. Global innovators large and small will take note that - despite all its rhetoric - the UK is clearly closed for business."

We will update the story as it unfolds.

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