Microsoft’s Acquisition of Activision Blizzard Blocked by CMA in UK

gamingbolt.com:

After rumors to the contrary, the Competition and Markets Authority in the UK has officially prevented Microsoft’s planned acquisition of Activision Blizzard. Though it previously said the deal wouldn’t harm competition in the console gaming market in its provisional findings, the decision is due to concerns that it “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.”

The final decision fell on Microsoft’s failure to provide a solution for cloud gaming concerns, which the CMA outlined last February. Microsoft already makes up about 60 to 70 percent of cloud gaming services worldwide, and other strengths like commanding the largest PC OS market share with Windows. The CMA felt that having Actvision’s titles exclusive to its cloud service would benefit it immensely, not to mention the advantage of control over franchises likeCall of Duty, Overwatch and World of Warcraft.

Without the merger, Activision’s games could be available on other cloud platforms, providing more choices. “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 development of these opportunities,” it said.

Microsoft did provide a proposal addressing some concerns, but the CMA said this had a “number of significant shortcomings connected with the growing and fast-moving nature of cloud gaming services.” They are as follows:

“Given the remedy applies only to a defined set of Activision games, which can be streamed only in a defined set of cloud gaming services, provided they are purchased in a defined set of online stores, there are significant