Microsoft Merger blocked, Activision accuses UK of being “closed for business”
The UK government’s Competition and Markets Authority (CMA) has announced that it has “prevented” Microsoft’s proposed acquisition of Activision Blizzard – a move that’s sent a shockwave through the gaming industry.
In a press release concerning the planned acquisition, the CMA stated(opens in new tab) that it has “prevented Microsoft’s proposed purchase of Activision over growing concerns the deal would alter the future of the fast-growing cloud gaming market, leading to reduced innovation and less choice for UK gamers over the years to come.”
Microsoft’s proposed acquisition of Activision Blizzard has been drawing scrutiny from government bodies worldwide, with many stating concerns that the proposed merger would give Microsoft an unfair market advantage. The Federal Trade Commission in the United States still has a pending lawsuit against Microsoft on the grounds that the tech giant is breaching antitrust laws and may be on the verge of creating a monopoly. The first hearing is due to take place August 2.
In a report available on the UK government’s website(opens in new tab), the CMA elaborated on its position: “We have concluded that the merger would result in the most powerful operator in the fast-developing market for cloud gaming, with a current market share of 60-70%, acquiring a portfolio of world-leading games with the incentive to withhold those games from competitors and substantially weaken competition in this important growing market.”
The CMA’s decision has put a major spanner in the works for Microsoft, which, anticipating the CMA’s approval, was planning to close the merger deal within a matter of days (via New York Post(opens in new tab)). It now seems that Microsoft will have no choice but to
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