Microsoft Deal to Buy Activision Blizzard Is Officially Blocked by UK’s CMA

wccftech.com:

Following hints from Activision Blizzard's pre-market stock being down, the UK's Competition and Markets Authority (CMA) regulatory body has rendered a negative verdict on Microsoft's proposed $68.7 billion deal to buy the company.

This is unexpected following the CMA's reversal and admission that the console market wouldn't be endangered by the acquisition. The CMA has therefore ruled against the deal based on the supposed dangers for the cloud market, stating that the behavioral remedies proposed by Microsoft would not be enough.

The CMA's press release says the company would have reason to make Activision Blizzard games exclusive to its cloud services, which are already in a strong position to begin with, according to the regulatory body. Here's an excerpt from the overview document shared by the CMA:

On cloud gaming, our assessment is different. Microsoft already has strong advantages in this market. It owns Windows, which is by far the leading PC operating system, and the operating system on which most PC games run; it has significant cloud infrastructure and systems through Azure and Xcloud; and it has a strong gaming base through its Xbox ownership and a portfolio of leading games. No other cloud gaming operator has this combination of advantages. Some of these strengths are already reflected in Microsoft’s current UK market share of cloud gaming of between 60-70%.

Activision games such as Call of Duty, Overwatch, and World of Warcraft are among the most popular content available on consoles and PCs. We found that Activision’s games are likely to be important to cloud gaming services in the future. While Activision has so far not offered its games on a cloud gaming service, the evidence shows that it will have