The UK CMA shocked everyone this week, announcing that it was blocking Microsoft's acquisition of Activision Blizzard in the interest of protecting competition in the burgeoning cloud-gaming market.
Well, maybe not everyone. I was shocked, however, as my assessment of the deal hasn't really changed since the CMA released its first provisional ruling in February. Given that cloud gaming as a market barely exists at this point and Sony could choose to compete more aggressively there if it felt like it, I'm suprised the CMA found that to be the sticking point.
But I don't really want to talk about what this means for the deal or what happens now. You can certainly find better informed takes on that, perhaps on this very site.
What I want to talk about are the different approaches Microsoft and Activision Blizzard initially took to this setback.
QUOTE | "The CMA's decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom." - Microsoft vice chair and president Brad Smith in a statement released immediately after the ruling and promises to appeal.
QUOTE | "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." – An Activision Blizzard representative offers the publisher's own take.
In short, it's a Good Monopolist, Bad Monopolist routine. Or
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