Microsoft, Activision-Blizzard, and the CMA: So, What’s Next?

ign.com:

In a surprise decision yesterday, the UK’s Competition and Markets Authority made the decision to block Microsoft’s planned $69 billion acquisition of Activision-Blizzard, citing concerns over Microsoft’s ability to dominate the emerging cloud gaming market with exclusives like Call of Duty.

While the deal has seen challenges in numerous other regions including the US and the EU, many expected the CMA to approve it, especially after its March statement that Call of Duty console exclusivity was no longer a concern. Thus with further legal challenges looming globally and Microsoft set to appeal the CMA’s decision, many are now wondering what’s next for Microsoft and Activision-Blizzard both in the UK and abroad.

The answer is of course complicated, dependent on multiple regulatory bodies, time consuming, and above all, expensive. We spoke to lawyers and analysts to help unpack the rocky road Microsoft has ahead of it if it wants to pursue Activision-Blizzard, what possible outcomes remain, and why we’re likely going to be hearing about this deal for months and potentially years to come.

After a lengthy review, the CMA has moved to prevent Microsoft from acquiring Activision-Blizzard, but not for the reason many expected. While much of the public debate has centered around the possibility of Call of Duty console exclusivity to Xbox, the CMA determined back in February that this was not actually a serious concern. In the end, what convinced the CMA to fire back was not Call of Duty, but cloud gaming.

We’ve covered what exactly the CMA’s objections are to the acquisition regarding cloud gaming in detail elsewhere, but to summarize, the CMA is concerned that if Xbox purchased Activision Blizzard, it would be able to dominate the