UK blocks Microsoft Activision Blizzard deal

eurogamer.net:

Microsoft's $68.7bn Activision Blizzard deal has been dramatically blocked by UK regulators, following a months-long investigation.

The decision by the UK's Competition and Markets Authority prevents Microsoft from buying the publisher behind Call of Duty, World of Warcraft and Candy Crush, follows earlier concerns it would lead to an unfair impact on archrival PlayStation.

Instead, today's decision stems from the CMA's concerns over the deal's proposed impact on the cloud gaming sector. In response, Microsoft has said it will now issue an appeal.

«We remain fully committed to this acquisition and will appeal,» Microsoft president Brad Smith said today. «The CMA's decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom.

»We have already signed contracts to make Activision Blizzard's popular games available on 150m more devices, and we remain committed to reinforcing these agreements through regulatory remedies. We’re especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works."

Activision Blizzard issued its own response, criticising the decision as a «disservice to UK citizens, who face increasingly dire economic prospects. Here's that statement in full:

»The CMA's report contradicts the ambitions of the UK to become an attractive country to build technology businesses," an Activision Blizzard spokesperson said. «We will work aggressively with Microsoft to reverse this on appeal. The report’s conclusions are a disservice to UK citizens, who face increasingly dire economic prospects. We will reassess our growth