Microsoft's proposed Activision Blizzard acquisition has been blocked by the UK

rockpapershotgun.com:

Microsoft’s proposed acquisition of Activision Blizzard King has hit a large snag on the road. The UK’s Competitions And Markets Authority (CMA) previously released their provisional findings on the $69 billion buyout, laying out concerns over less competition and innovation for UK gamers. Microsoft were allowed to respond to the CMA’s findings, but it seems they weren’t able to quell the regulator’s concerns, as the CMA have now vetoed the merger.

The issue of exclusivity for series like Overwatch, Diablo, and, most of all, Call Of Duty has been at the centre of headlines for months, but the CMA’s final decision is over the acquisition’s possible side effect on the cloud gaming market.

“The CMA has prevented Microsoft’s proposed purchase of Activision over concerns the deal would alter the future of the fast-growing cloud gaming market,” reads the CMA’s announcement. They also say the deal would lead “to reduced innovation and less choice for UK gamers over the years to come,” and that “Microsoft’s solution failed to effectively address the concerns” in the CMA’s provisional findings.

The CMA estimates that cloud gaming will be worth £11 billion globally and £1 billion in the UK by 2026. Currently, the CMA says that Microsoft accounts for 60-70% of global cloud gaming services, giving them a chunky head start. To the CMA, approving the buyout “would risk undermining the innovation that is crucial to the development of these opportunities.”

Microsoft signed many deals in the lead-up to the CMA’s decision, committing to release games on rival streaming providers and console manufacturers in the future. The CMA found multiple shortcomings in Microsoft's proposal, though, as they say the company wasn’t open to PC