Microsoft Dealt Major Blow as UK Blocks Activision Buyout | Push Square

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In a dramatic twist that we frankly never saw coming, the UK's Competition and Markets Authority (CMA) has blocked Microsoft's acquisition of Activision Blizzard after months of investigations and deliberations.

Microsoft's industry-shaking $69 billion buyout of the colossal publisher has, predictably, been the subject of much discussion. Following on from reports in March that the CMA was no longer concerned about Microsoft's deal — essentially saying that it wouldn't have a negative impact on the industry — this block comes as a huge surprise. In fact, analysts were fully expecting the CMA to give the Xbox maker the greenlight today.

But here we are, with the CMA dealing a significant blow to Microsoft's plans. The Redmond-based company will, of course, appeal against the decision — but for a move that was supposed to go quite smoothly up until just minutes ago (at the time of writing this article), this is a real setback for Microsoft.

Here's the official ruling from the CMA, in tweet form:

Indeed, it looks like the block has been made on behalf of concerns over cloud gaming — another twist we didn't see coming. The CMA's report says: «Microsoft’s solution had significant shortcomings and would require regulatory oversight by CMA.» It continues: «Cloud gaming needs a free, competitive market to drive innovation and choice.»

The CMA essentially argues that Microsoft already has a strong hold on the cloud gaming space, and that the Activision Blizzard buyout would push its position too far, damaging potential competition and industry growth.

«Allowing Microsoft to take such a strong position in the cloud gaming market just as it begins to grow rapidly would risk undermining the innovation that is crucial to the