Here's What Microsoft Can Do in $69 Billion Activision Deal After UK Ban
Britain's Competition and Markets Authority (CMA) on Wednesday blocked Microsoft's $69 billion (nearly Rs. 5,64,100 crore) acquisition of Call of Duty maker Activision Blizzard over concerns it would hinder cloud gaming.
The ruling was a shock after the regulator had already resolved its concerns about the consoles market, a sector dominated by Sony's PlayStation and Microsoft's Xbox, which dwarfs cloud gaming.
Is the deal dead?
Not necessarily. Microsoft said it remained fully committed and would appeal.
The regulator's decision reflected a flawed understanding of the market, it said.
How does the appeal process work?
Microsoft can appeal to Britain's Competition Appeal Tribunal (CAT), an independent judicial body, which will only examine the CMA's decision-making process, not the merits of the merger.
Microsoft will not be able to offer new remedies at this stage, such as offering to keep Activision content off its Xbox Game Pass, a subscription service for Xbox users, in Britain, as some analysts suggest.
"The CAT will not engage with the merits of the CMA's decision or conduct a wholesale review of the parties' evidence," said Edward Lane, senior associate at law firm Harbottle & Lewis, where his particular focus is on creative industries, including film, TV, video games and music.
What's next?
Microsoft must appeal by May 24 and a decision may take many months.
"The CAT aims to deal with 'straightforward' cases in under nine months – and Microsoft/Activision is anything but straightforward," Lane, said.
What happens if Microsoft wins?
The Tribunal will return the case to the regulator for further review. Microsoft can then offer new concessions.
"The likelihood is that without a material change in
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