UK MPs grill regulator over Microsoft Activision Blizzard deal block, day after EU grants approval
The UK Competition and Markets Authority has defended its decision to block Microsoft's $68.7bn Activision Blizzard buyout, as part of a grilling by MPs today.
CMA bosses Marcus Bokkerink and Sarah Cardell faced repeated questions from the UK government's Business and Trade Committee this morning relating to the decision, just a day after the European Commission voted to approve the deal in the EU.
MPs asked the CMA to explain why it had reached a different decision on the deal to its European counterpart, and repeatedly questioned whether the CMA had considered the effects of blocking a deal like this on the UK's international reputation.
«I understand the inference — that when a decision is made that blocks a deal, there are questions over whether the UK is open for business,» CMA chair Marcus Bokkerink replied. «All businesses know there's a very big difference between building a business, investing in a new business, investing in a startup, creating a new business — there's a big difference between that and buying an already-established, well-established firm with established positions. The two are not the same.
»The UK has always encouraged — and it is the CMA's duty to encourage — open competitive markets. We are vigilant — as it is our duty to be — to investments that consolidate an already-entrenched market power.
«I would challenge the premise that there is an impact on international confidence on doing business in the UK,» Bokkerink continued, suggesting that it would conversely not inspire confidence if the UK was seen to be «turning a blind eye to anti-competitive mergers».
The CMA's decision to block the deal has repeatedly spilt over into the political arena, as both Microsoft and Activision Blizzard
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