How Microsoft hopes to defeat the CMA's block against its ABK acquisition
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The UK's Competition Appeal Tribunal has published a summary of Microsoft's appeal against the block against its proposed acquisition of Activision Blizzard, lending more insight into how it hopes to overturn the decision.
Microsoft filed its appeal with the CAT last week following the Competition and Markets Authority's announcement in April that it would not approve the $68.7 billion deal.
The Xbox firm's arguments to the CAT centre around proving the CMA was flawed in how it reached its decision, centring around five key points:
Microsoft claimed the CMA made several "fundamental errors" in assessing the platform holder's position in cloud gaming, in part because it failed to factor in the role of native gaming (i.e. users playing games installed on their devices).
The appeal alleged that the CMA failed to consider the potential for users switching to native gaming, resulting in the "flawed conclusion" that cloud gaming services are a separate product market. So far, Microsoft has primarily positioned its own Xbox Cloud Gaming as an add-on service to Game Pass subscribers, allowing them to continue their play session on the move.
Microsoft also claimed the CMA made errors in its calculation and assessment of the market share for cloud gaming services. GamesIndustry.biz spoke to analysts last week about cloud gaming, with one citing an Omdia report that estimates cloud gaming will still only account for 6% of total consumer spending by 2026.
The Xbox firm said the Competition and Markets Authority failed to take into account three long-term commercial agreements it has established with cloud gaming providers to add Microsoft and (if the
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